A bridge loan is priced as a short-term, interest-only loan, so its cost is mostly a function of the rate, the time you keep it and what is paid at closing. Below is the arithmetic on a $2M loan against a Miami investment property, using the ranges Passy Capital publishes and the Florida taxes that apply to every loan secured by Florida real estate.
The cost, item by item
There are no upfront fees: nothing is paid before closing. Title insurance premiums in Florida are set by state rule, so they do not vary between title insurers.
| Item | Basis | Amount |
|---|---|---|
| Interest | 8% to 12% a year, interest-only | $160,000 to $240,000 a year ($13,333 to $20,000 a month) |
| Fee | 1% to 2% of the loan, paid at closing | $20,000 to $40,000 |
| Florida documentary stamp tax on the note | $0.35 per $100 of the loan | $7,000 |
| Florida intangible tax | 0.2% (2 mills) of the amount secured | $4,000 |
| Appraisal, title insurance, closing agent, insurance | Quoted for the specific property | Shown on the term sheet and closing statement |
| Total of the items above | Held the full 12 months | $191,000 to $291,000 |
Where you land in the 8% to 12% range
Three things move the rate: leverage, the property and your experience. A loan at the top of the leverage range, on an unusual property, to a first-time investor prices higher than a moderate loan on a standard single-family house to a borrower with completed projects. The exit matters as much: a credible sale or refinance plan is part of the price.
Bridge loans go up to 80% LTV. A $2M loan at that maximum implies a value or price of at least $2.5M, so about $500,000 of equity plus closing costs. A cash-out on a property you already own is 5 points lower, up to 75% LTV.
Costs on the purchase side in Miami-Dade
- Documentary stamp tax on the deed: $0.60 per $100 of the price in Miami-Dade, plus a $0.45 surtax unless the property is a single-family dwelling (elsewhere in Florida, $0.70 per $100)
- Property tax: investment property gets no homestead exemption, and the assessed value of non-homestead residential property can rise by up to 10% a year for non-school taxes under current law
- A constitutional amendment on the November 3, 2026 ballot would lower that cap to 5% if approved by 60% of voters
Cutting the cost: time is the lever
With no prepayment penalty, interest stops the day you sell or refinance. On the $2M example, every month saved is $13,333 to $20,000. That is why the exit should be lined up before closing: a buyer for a renovated property, or a DSCR loan up to 80% LTV with a 30-year fixed rate available from 6% to 6.5% if you keep it as a rental.
Speed on the way in matters too. A term sheet comes back in 24 to 48 hours and a clean file closes in about two weeks; how fast a $1M to $5M bridge loan closes lists what slows a file. Terms for the program are on bridge loans, and Miami specifics on investment property loans in Miami.
Same cost for a foreign investor
A non-US investor borrows on the same terms through a US LLC, with no foreign-national rate premium and no US credit history required. The only addition is time: a first-time non-resident borrower who still has to form the LLC and open its bank account should allow roughly one to two more weeks.