HELOC

I have been looking at a way to get a bridge mortgage as a backup in case closing of current house is delayed past closing date of new house.  My credit union loan officer made a/pretty brilliant proposal: take a Home Equity Line of Credit on the old house. If we need to pay cash when closing date arrives, we pay for it with the HELOC, then when the old house closes, it pays off the HELOC.

If there are no surprises between offer on old house and closing, we do not need to use any of it. If there are, we have a few months of hefty payments on the HELOC before sale of old house.