Loan Comparison: 4.99% vs 6.5%

How gap financing works: The equity gap ($68,320) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($42,995, 5% of purchase price) and a second mortgage for the rest ($25,325 at 7.5%). Even with two payments, the blended cost is typically much lower than a new conventional loan. We work with lenders who specialize in assumption gap financing.