Loan Comparison: 2.68% vs 6.5%

12858 Ironstone, Parker, CO 80134 · 1bd/1ba · $240,000

List Price
$240,000
Assumable Rate
2.68%
Remaining Balance
$201,286
Equity Gap
$38,714
Loan Type
FHA

Adjust Your Scenario

$12,000
$12,000$38,714
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.68% (FHA)
Blended Rate: 3.36%

Monthly Payment Comparison

New Conventional @ 6.5%
$1,441/mo
Assumable @ 2.68% + gap loan
$1,020/mo
Assumed loan: $814/mo
Gap financing: $205/mo
$421less per month with the assumable

Your Savings on This Property

12858 Ironstone, Parker · 2.68% FHA vs 6.5% conventional

$421
per month
$5,057
per year
$151,711
over 30 years
$151,711
interest saved
How gap financing works: The equity gap ($38,714) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($12,000, 5% of purchase price) and a second mortgage for the rest ($26,714 at 8.5%). 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.
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