Swing Loans, Temporary Loans, Bridge Loans. They all basically mean the same thing.

You are taking equity out of your current residence, because it has not sold and/or settled yet, to use towards the purchase of a new home.

Wilson Mortgage Services, Inc. can get you up to 80% of the value of your current residence less any outstanding liens to use towards the purchase of your new home. The money you borrow can be used towards the down payment or the closing costs and prepaids on the new home. You can also use the proceeds of this loan to payoff your first lienholder so that you will only have 1 payment.

The payment you make on this type of loan is usually an interest only payment. The interest rate is guaranteed usually for a period of only 1 year.

To figure the amount of a "swing loan" you would be eligible for, take the value of your current residence, times 80% less any outstanding debt. The balance would be the amount you could borrow on a swing loan.

When you obtain a swing loan, normally you will have the following mortgage payments until your current residence sells. Your current house payment, the new swing loan payment, and the payment on your new home. Some people will opt to take enough money on the swing loan in order to payoff their current mortgage. By doing this, you would only have the interest payment on the swing loan and the payment on your new residence.