Loan Comparison: 3.76% vs 6.5%

739 Sage, Berthoud, CO 80513 · 3bd/4ba · $540,000

List Price
$540,000
Assumable Rate
3.76%
Remaining Balance
$439,137
Equity Gap
$100,863
Loan Type
FHA

Adjust Your Scenario

$27,000
$27,000$100,863
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 3.76% (FHA)
Blended Rate: 4.44%

Monthly Payment Comparison

New Conventional @ 6.5%
$3,243/mo
Assumable @ 3.76% + gap loan
$2,604/mo
Assumed loan: $2,036/mo
Gap financing: $568/mo
$638less per month with the assumable

Your Savings on This Property

739 Sage, Berthoud · 3.76% FHA vs 6.5% conventional

$638
per month
$7,660
per year
$229,810
over 30 years
$229,810
interest saved
How gap financing works: The equity gap ($100,863) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($27,000, 5% of purchase price) and a second mortgage for the rest ($73,863 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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