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Bridge · Buy Before You Sell

Bridge Loan, Capital Gains Tax Exclusion & Payment Recast Calculator

Buy your next home before the current one sells. Estimate your usable equity, bridge payment, post-sale recast, and the capital gains tax you could save.

Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer

Are you selling your primary residence?

80% max leverage on a primary residence; 75% on investment or second home.

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Net equity you want to keep on hand instead of putting toward the new home.

%

~6% with a Realtor; add 1–2% for transfer taxes, title, attorney. Varies by state.

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Did you live in the home 2 of the last 5 years?
How do you file income taxes?

Capital gains exclusion: $250,000 individual / $500,000 joint.

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0%, 15%, or 20% depending on your taxable income.

Summary

Equity Available

Total Estimated Net Equity Available$266,750After exit costs, payoff, and ~3% bridge costs.
Equity You Will Keep On Hand$53,350
Total Equity to Transfer (both sales close)$213,400

New Purchase

Initial Equity as Down Payment$175,000Subject to 80% (primary) / 75% (investment) CLTV.
Initial Loan Amount$625,000
Initial Principal & Interest$4,153.94
Monthly Insurance$200
Monthly Taxes$417
HOA Paid Separately$0
Initial Total Monthly Housing Expense$4,771
Cash to Close — without seller credit$48,000Reduced by bridge funds; includes 6% estimated closing costs. Not a Loan Estimate.
Cash to Close — with 6% seller credit$0
Monthly Income Target to Qualify$9,541Assumes a 50% DTI qualifying ratio.

After Recast (departing home sells)

Remaining Equity to Transfer$38,400
Final Loan Amount$586,600
New Principal & Interest$3,898.72
Final Total Monthly Housing Expense$4,515

Capital Gains Tax Saved

1st-Year Tax Saved (exclusion rule)$40,013
Value of that savings in 15 years (3%)$62,338
Value of that savings in 30 years (3%)$97,121

Reinvest the Savings in Real Estate

Rental Property Price (5x at 20% down)$200,063
Estimated value after 15 years$311,691
Estimated value after 30 years$485,604
See My Options

Estimates only — not a commitment to lend.

Jim Blackburn

By Jim Blackburn

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Important Disclaimer

This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.

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