20% is barely survivable if it's a bridge loan

[Pavel Pin]

Molly says to Dean:

Banks are loaning you money, and they shouldn't. You're a bad risk, they know it. So, the debt service on your loans is close to 20%, which is crazy. 20% is barely survivable if it's a bridge loan, but, like, .......

How 20% is barely survivable if it's a bridge?
Source: Molly's Game 2017

 

[Egmont]

A bridge loan is not related to bridges. It is a loan taken out for a short period of time, such as the time between when one purchases a new home and when one sells a previous home. Because it is only taken out for a short time, the total amount of interest on a bridge loan is low even if the interest rate is high. "Barely survivable" means the person paying this interest rate can make the required payments on the loan, but without much money to spare, and only for a short time.

 

[Pavel Pin]

Thank you