What is defined as a loan that occurs between the termination of one mortgage and the beginning of the next?

A bridge loan is specifically designed to provide temporary financing between the closure of one mortgage and the initiation of another. This type of loan is especially useful when a homeowner is in the process of selling one home while concurrently looking to purchase another. It essentially "bridges" the gap in funding, allowing the borrower to access the equity from the home being sold until the sale is finalized.

This is distinctly different from conventional loans, which are standard mortgage loans used for purchasing property, and do not have the temporary nature that bridge loans entail. Home equity loans, on the other hand, allow homeowners to borrow against the equity in their existing home but are not specifically used for transitioning between properties. Balloon loans involve a large final payment after a series of smaller payments, and they do not serve the transitional need that a bridge loan addresses.