Knock Bridge Loan Costs: Fees, 0% Interest for 6 Months, and Repayment

Knock Bridge Loan Costs: Fees, 0% Interest for 6 Months, and Repayment

The Knock Bridge Loan charges 0% interest for 6 months, so the costs to weigh are a modest bridge loan fee, the separate Knock Purchase Offer fee, third-party closing costs, and the cost of carrying your old home until it sells. This breakdown explains what you’ll typically pay and how the balance is repaid in a single payment when the old home sells.

Before you use a bridge loan, run the numbers in these buckets: upfront loan fees, financing charges over the bridge period, third-party closing costs, and the cost of carrying your old home until it sells. The Knock Bridge Loan works differently from a traditional bridge loan in that financing bucket — Knock charges 0% interest for 6 months rather than accruing monthly interest — but the last piece, carrying costs, is easy to underestimate either way. A bridge loan solves a real timing problem — it lets qualified homeowners buy before they sell — but the total cost depends a lot on how fast the old home closes.

This guide walks through the main cost categories, how repayment usually works once the old home sells, and the math worth doing before you decide. For the broader program overview, see buy before you sell with Knock.

Key Takeaways

• Knock bridge loan cost usually comes down to four categories: the bridge loan fee, the separate 2.25% Knock Purchase Offer fee for a non-contingent offer, third-party closing costs, and old-home carrying costs.

• The Knock Bridge Loan itself charges 0% interest for 6 months. Rather than accruing monthly interest, it carries a modest bridge loan fee plus the 2.25% Knock Purchase Offer fee, and both can be deducted from the loan proceeds.

• Carrying costs can matter just as much as the loan itself because you may still be paying the old mortgage, taxes, insurance, HOA dues, and utilities until the sale closes.

• Repayment usually comes from the proceeds of the old home sale after existing liens, closing costs, and seller expenses are paid.

• The real question is not just “What is the fee?” It is whether the bridge loan helps you avoid price cuts, rushed listing choices, or a weaker contingent offer.

What the Knock Bridge Loan Cost Includes

Knock bridge loan cost is the full cost of getting from one home to the next: the bridge loan fee, the separate Knock Purchase Offer fee, closing expenses, and the ongoing cost of owning the old home while it is still on the market. Knock charges 0% interest on the bridge loan for 6 months, so unlike a traditional bridge loan the cost is driven by fees and carrying time rather than accruing interest. The total varies based on home value, equity, loan amount, how long the sale takes, market conditions, and the borrower’s profile.

That distinction matters because a bridge loan is not a flat moving fee. It is a structure that connects three things at once: buying the next home, selling the current one, and covering the gap in between.

In practice, it helps to separate the costs into clear categories before comparing options:

According to the Consumer Financial Protection Bureau’s Loan Estimate guidance, mortgage borrowers should receive a Loan Estimate showing projected loan terms, monthly payments, and closing costs after applying for a covered mortgage loan. Bridge products vary, and timing structures vary too, but the same rule applies: look at the full cash impact, not one advertised number.

The biggest issue usually is not qualification. It is timing. A buyer may qualify on paper, but if the old home takes 90 days to sell instead of 30, the cost picture changes fast.

Knock Bridge Loan Fees: What Usually Shows Up Upfront

Knock bridge loan fees can include lender or program charges plus third-party transaction costs, but the only numbers that count are the ones in your loan documents. Early estimates are useful, but final written disclosures are what matter.

Buyers usually look at these upfront or closing-related costs:

• Origination or program fee: A charge for arranging or funding the bridge loan, if it applies under the final structure.

• Processing and underwriting charges: Costs tied to reviewing credit, equity, title, and borrower documents.

• Title and settlement fees: Charges paid to title or escrow providers for lien searches, document prep, closing, and recording.

• Recording fees: County or municipal fees for recording mortgage or deed-of-trust documents.

• Payoff and wire fees: Smaller charges that can show up when sale proceeds are used to repay liens.

According to the Consumer Financial Protection Bureau’s Closing Disclosure guidance, borrowers should review final loan terms, projected payments, and closing costs before consummation. In a buy-before-sell transaction, that review should happen alongside the purchase closing calendar and the listing plan for the old home.

One practical way to organize fees is in three columns: due at closing, financed into the loan if allowed, and paid at payoff. That keeps you from making a very common comparison mistake — focusing only on cash due today and missing the interest or payoff costs that show up later.

For qualification inputs such as equity and credit profile, see Knock bridge loan requirements and Knock bridge loan credit score review factors.

Knock Bridge Loan Financing Charges: 0% Interest for 6 Months

The Knock Bridge Loan does not accrue monthly interest. It charges 0% interest for 6 months and is structured as a single-payment (balloon) loan repaid when your old home sells. Instead of interest, the financing cost is a modest bridge loan fee. Knock’s FAQ illustrates it as an APR: a $150,000 bridge loan with an APR of 2.485% would be repayable in a single payment of about $151,850 on the maturity date — roughly $1,850 of fee in that example.

To make a non-contingent offer, there is also a separate 2.25% Knock Purchase Offer fee, a contract fee based on the home’s listing price. Both the bridge loan fee and the Knock Purchase Offer fee can be deducted from the loan proceeds, so they do not have to come out of pocket at closing.

Because the loan is 0% interest for 6 months, delay does not pile up daily interest the way a traditional bridge loan would. What matters instead is the 6-month window: if the home hasn’t sold after 6 months, Knock buys it at a pre-agreed price. The real time-based cost during the bridge is carrying the old home, covered in the next section.

If you are instead comparing a traditional, interest-bearing bridge loan from another lender, the math works differently. The basic calculation for that kind of loan is:

Bridge balance × annual interest rate ÷ 365 × days outstanding = estimated interest cost.

For a generic example — not the Knock Bridge Loan, which is 0% interest for 6 months — a $100,000 balance at an illustrative 10% annual rate would accrue about $27.40 per day, or roughly $833 in a 30-day month. At 60 days, that is about $1,644. At 120 days, about $3,288. The table below shows that generic, traditional-bridge-loan illustration only:

Market rates still matter to your overall move. According to Freddie Mac’s Primary Mortgage Market Survey, average mortgage rates are published weekly and can move quite a bit over short stretches. Your new-home mortgage pricing and listing strategy are affected by that environment, even though the Knock Bridge Loan itself is 0% interest for 6 months.

This is where good execution matters. If the old home is priced right, prepped before launch, and listed right after the buyer closes, it sells well within the 6-month window and carrying costs stay manageable. If the seller delays repairs, prices too high, or misses the best listing window, carrying costs climb. Time is still the cost driver — through carrying costs, not bridge-loan interest.

For a transaction sequence view, see buy before you sell timeline with Knock.

Carrying Costs After Buying Before Selling

Carrying costs are the monthly expenses of owning the old home after the new purchase closes. In plenty of deals, they matter more than the bridge loan fee, especially when the old home lingers on the market longer than expected.

Carrying costs usually include:

• Existing mortgage principal and interest

• Property taxes and homeowners insurance

• HOA or condo dues

• Utilities, lawn care, snow removal, pool service, or security monitoring

• Repairs requested before listing or after inspection

• Cleaning, staging, storage, and minor maintenance

According to the U.S. Census Bureau’s American Housing Survey, housing costs vary widely by geography, tenure, and property type. That is why a bridge loan estimate in Atlanta can look different from one in Denver, Dallas, or Northern New Jersey even with a similar loan amount.

A useful way to model carrying costs is to turn them into a daily number. A $3,600 monthly mortgage, $400 in utilities and maintenance, and $300 in HOA dues adds up to $4,300 per month, or about $143 per day. A 45-day delay in selling adds roughly $6,435 in carrying costs — and with the Knock Bridge Loan there is no bridge interest stacking on top of that, since it is 0% interest for 6 months.

This is the part people often miss. A buyer may qualify without much trouble, but if the listing strategy is off, the transaction gets harder to manage cleanly. For move-up buyers, cost control starts before the offer is written: pre-listing repairs, disciplined pricing, photo timing, and agent coordination matter just as much as the loan terms.

For agent-side coordination, see Knock for real estate agents. For post-purchase sale planning, see selling after buying a house timeline, and if the property is lingering, review old house not selling with Knock.

How Repayment Usually Works After the Old Home Sells

Bridge loan repayment usually happens when the old home closes and the sale proceeds are disbursed through escrow or settlement. The payoff is typically handled alongside the existing mortgage payoff, closing costs, commissions, and any seller credits.

The repayment sequence usually looks like this:

1. Request an updated payoff statement for the existing mortgage and bridge loan before the old home closing.

2. Confirm the title or escrow company has payoff wiring instructions for each lienholder.

3. Review the seller closing statement to verify gross sale price, loan payoffs, taxes, commissions, seller credits, and net proceeds.

4. Authorize the settlement company to pay the bridge loan from available sale proceeds at closing.

5. Keep the final closing statement and payoff confirmation for tax, accounting, and personal records.

According to the CFPB’s Closing Disclosure resource, final closing disclosures are meant to help borrowers compare actual terms and costs against earlier estimates. Sellers should bring that same mindset to the old-home closing statement. Every payoff and fee should tie back to something expected.

The main edge case is a sale price that comes in lower than expected. If price cuts, repair credits, or closing delays reduce net proceeds, the seller needs to confirm that the proceeds still cover all required payoffs. That is one reason conservative pricing usually beats a best-case spreadsheet.

Buyers comparing this structure with contingent-offer strategies can review Bridge Loan vs Home Sale Contingency: Costs and Timeline and Home Sale Contingency Alternative: Process With Knock.

A Practical Cost Framework for Deciding Whether the Bridge Loan Makes Sense

The right comparison is not bridge loan cost versus zero. It is bridge loan cost versus the cost of bad timing. A home sale contingency, delayed purchase, temporary rental, double move, or rushed listing can all carry real costs even if they do not show up as a loan fee.

It helps to model three scenarios before deciding:

According to the National Association of Realtors existing-home sales data, housing conditions change with inventory, pricing, and sales pace. Local markets do not always follow the national story, so buyers should lean on neighborhood-level comps instead of broad headlines.

In competitive markets, removing contingencies can improve a buyer’s position. That does not mean the financing cost stops mattering. It just means the cost needs to be weighed against the value of a cleaner offer, the risk of losing the target home, and the likely sale proceeds from a well-prepared listing.

For offer mechanics, see Non-Contingent Offer: Requirements for Move-Up Buyers. For customer-reported timing and cost themes, see Knock Bridge Loan Reviews (2026): Costs and Timelines.

Frequently Asked Questions

What is included in Knock bridge loan cost?

Knock bridge loan cost usually includes the bridge loan fee, the separate 2.25% Knock Purchase Offer fee for a non-contingent offer, third-party closing costs, and carrying costs on the old home until it sells. The Knock Bridge Loan charges 0% interest for 6 months, so there is no accruing monthly interest. Buyers should confirm current pricing in their written disclosures because fees, terms, and repayment details can vary by state, borrower profile, loan amount, and the final transaction structure.

Does the Knock bridge loan charge more interest if my old home takes longer to sell?

No. The Knock Bridge Loan charges 0% interest for 6 months, so a longer sale does not add daily interest. What does add up is carrying cost on the old home — mortgage, taxes, insurance, HOA dues, and utilities — until it sells, and if the home has not sold after 6 months, Knock buys it at a pre-agreed price. A traditional, interest-bearing bridge loan is different: at an illustrative 10% annual rate, a $100,000 balance would accrue about $27.40 per day, or about $2,466 over 90 days — but that generic figure is not how the Knock Bridge Loan works.

Does the Knock bridge loan get paid off automatically when the old home sells?

The payoff is usually handled through the title, escrow, or settlement company at the old home closing. The settlement company uses sale proceeds to pay existing liens and the bridge loan according to payoff statements, then sends any remaining net proceeds to the seller after closing costs, taxes, commissions, and credits are applied.

Why does Knock bridge loan cost vary by location?

Location affects recording fees, title charges, property taxes, insurance premiums, HOA dues, market time, and local seller closing practices. A homeowner in Texas may feel more pressure from property taxes and insurance than a homeowner in Georgia or North Carolina, while a slower local market can raise carrying costs simply by pushing the payoff date out.

Is a bridge loan cheaper than using a home sale contingency?

Not always. A bridge loan has direct financing costs, while a home sale contingency can create indirect costs like a weaker offer, seller rejection, delayed timing, or less negotiating leverage. The better comparison is total expected cost: financing and carrying costs on one side, versus price concessions, missed homes, double moves, and timing risk on the other.