Community/Bridge loan extension fees — what's reasonable and how do you negotiate them?
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Hector Vegabroker
Dec 14, 2025 at 8:00 AM
Bridge loan extension fees — what's reasonable and how do you negotiate them?
My borrower is 2 months from their bridge loan maturity and the exit isn't ready. They need a 6-month extension. The lender is quoting a 1% extension fee plus a rate bump. Is this standard? And how do you negotiate extension terms?
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5 months ago
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3 Replies
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Frank BelllenderDec 14, 2025 at 10:00 AM
Hector, from the lender side: 1% extension fee is standard. Rate bump of 0.5-1% is also common. The lender is taking on additional risk by extending — the fee compensates for that.
Negotiation leverage: if the borrower has been a good borrower (no missed payments, good communication), we're more flexible. If they've been difficult, we're not.
Tips: (1) Start the extension conversation 60-90 days before maturity, not 2 months before. (2) Come with a clear exit plan and timeline. (3) Ask if the extension fee can be added to the loan balance vs. paid upfront.
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Hector VegabrokerDec 14, 2025 at 11:00 AM
Frank — thank you. The borrower has been great — no issues. Going to reach out today with the extension request and a clear exit timeline. The 60-90 day tip is noted for future deals.
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Natalie CrossbrokerDec 14, 2025 at 12:00 PM
Always start extension conversations early. Lenders hate surprises at maturity.