Loan Comparison: 3.76% vs 6.5%

739 Sage, Berthoud, CO 80513 · 3bd/4ba · $515,000

List Price
$515,000
Assumable Rate
3.76%
Remaining Balance
$437,487
Equity Gap
$75,042
Loan Type
FHA

Adjust Your Scenario

$25,750
$25,750$75,042
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 3.76% (FHA)
Blended Rate: 4.24%

Monthly Payment Comparison

New Conventional @ 6.5%
$3,092/mo
Assumable @ 3.76% + gap loan
$2,408/mo
Assumed loan: $2,029/mo
Gap financing: $379/mo
$685less per month with the assumable

Your Savings on This Property

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

$685
per month
$8,218
per year
$246,537
over 30 years
$244,066
interest saved
How gap financing works: The equity gap ($75,042) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($25,750, 5% of purchase price) and a second mortgage for the rest ($49,292 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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