Loan Comparison: 4.37% vs 6.5%
2905 Neil, Fort Collins, CO 80526 · 2bd/2ba · $400,000
List Price
$400,000
Assumable Rate
4.37%
Remaining Balance
$257,228
Equity Gap
$142,772
Loan Type
FHAAdjust Your Scenario
$20,000
$20,000$142,772
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 4.37% (FHA)
Blended Rate: 5.70%
Monthly Payment Comparison
New Conventional @ 6.5%
$2,402/moAssumable @ 4.37% + gap loan
$2,228/moAssumed loan: $1,284/mo
Gap financing: $944/mo
$174less per month with the assumable
Your Savings on This Property
2905 Neil, Fort Collins · 4.37% FHA vs 6.5% conventional
$174
per month
$2,092
per year
$62,750
over 30 years
$62,750
interest saved
How gap financing works: The equity gap ($142,772) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($20,000, 5% of purchase price) and a second mortgage for the rest ($122,772 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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