How can I buy before I sell?

There are a couple of different options available if you're closing on your new home before you sell your current home.

The first is a "bridge" or "swing" loan. This is a very short-term loan meant to cover the time between the closing on your new house and the closing on your old one. The interest rates on these are often high, but because it's a short-term loan, you won't pay much in interest.

A home equity loan is another option. This can be a little trickier, and could cost you more than a bridge loan. Costs will mostly be determined by how much equity you have in your current home. Try to avoid paying points on this loan (points are upfront charges that equal a specific percentage of the loan amount), even if it means you end up with a higher interest rate. Again, because it's a short-term loan, the interest rate shouldn't affect you much at all.