Loan Comparison: 2.9% vs 6.5%

711 Spruce, Colorado Springs, CO 80905 · 2bd/1ba · $495,000

List Price
$495,000
Assumable Rate
2.9%
Remaining Balance
$298,773
Equity Gap
$196,226
Loan Type
VA

Adjust Your Scenario

$24,750
$24,750$196,226
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.9% (VA)
Blended Rate: 4.94%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,972/mo
Assumable @ 2.9% + gap loan
$2,562/mo
Assumed loan: $1,244/mo
Gap financing: $1,319/mo
$410less per month with the assumable

Your Savings on This Property

711 Spruce, Colorado Springs · 2.9% VA vs 6.5% conventional

$410
per month
$4,923
per year
$147,677
over 30 years
$147,676
interest saved
How gap financing works: The equity gap ($196,226) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($24,750, 5% of purchase price) and a second mortgage for the rest ($171,476 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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