Loan Comparison: 3.375% vs 6.5%

2374 Cinnabar, Colorado Springs, CO 80921 · 5bd/5ba · $649,900

List Price
$649,900
Assumable Rate
3.375%
Remaining Balance
$328,844
Equity Gap
$318,519
Loan Type
VA

Adjust Your Scenario

$32,495
$32,495$318,519
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 3.375% (VA)
Blended Rate: 5.76%

Monthly Payment Comparison

New Conventional @ 6.5%
$3,902/mo
Assumable @ 3.375% + gap loan
$3,653/mo
Assumed loan: $1,454/mo
Gap financing: $2,199/mo
$249less per month with the assumable

Your Savings on This Property

2374 Cinnabar, Colorado Springs · 3.375% VA vs 6.5% conventional

$249
per month
$2,992
per year
$89,761
over 30 years
$87,224
interest saved
How gap financing works: The equity gap ($318,519) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($32,495, 5% of purchase price) and a second mortgage for the rest ($286,024 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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