Finance
In Montana, a 'bridge loan' (swing loan) is commonly used when:
AA borrower needs permanent financing for a new construction project
BA buyer needs short-term financing to purchase a new home before their existing home is sold✓ Correct
CA commercial borrower wants to convert variable rate debt to fixed rate
DA lender sells mortgage loans on the secondary market
Explanation
A bridge (swing) loan provides short-term financing allowing a Montana buyer to purchase a new home using their existing home's equity as collateral before the existing home is sold. These are short-duration loans that 'bridge' the gap between purchase and sale, typically carrying higher rates due to their short-term nature.
Related Montana Finance Questions
- A Montana lender who retains a mortgage loan in their portfolio rather than selling it on the secondary market is called a:
- In Montana, a 'mortgage servicer' is the entity that:
- A Montana buyer uses an FHA loan with a 3.5% down payment on a $250,000 home. What is the required down payment?
- A Montana homebuyer who obtains a fixed-rate mortgage at today's rates and then rates rise significantly will:
- In Montana, a borrower seeking a rural home loan might benefit from a USDA Rural Development (Section 502) loan because it offers:
- Private mortgage insurance (PMI) is typically required by lenders when a Montana buyer's down payment is:
- In Montana, 'points' paid on a mortgage as 'origination fees' are characterized as:
- A Montana lender who offers a 'portfolio loan' is providing financing where:
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