Final answer:
A bridge loan is a type of mortgage that allows homeowners to use one property to finance the purchase of another property.
Step-by-step explanation:
A mortgage loan that uses one property to finance the purchase of an additional property is called a bridge loan.
This type of mortgage is commonly used by homeowners who want to purchase a new property before selling their existing property. The bridge loan allows them to use the equity in their current property as a down payment for the new property.
For example, if a homeowner wants to buy a new house but hasn't yet sold their current house, they can take out a bridge loan to finance the purchase of the new house. Once they sell their current house, they can use the proceeds to pay off the bridge loan.