Loan Comparison: 2.74% vs 6.5%

2756 Nichols, Centennial, CO 80122 · 3bd/4ba · $429,000

List Price
$429,000
Assumable Rate
2.74%
Remaining Balance
$304,773
Equity Gap
$124,227
Loan Type
FHA

Adjust Your Scenario

$21,450
$21,450$124,227
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.74% (FHA)
Blended Rate: 4.19%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,576/mo
Assumable @ 2.74% + gap loan
$2,033/mo
Assumed loan: $1,243/mo
Gap financing: $790/mo
$543less per month with the assumable

Your Savings on This Property

2756 Nichols, Centennial · 2.74% FHA vs 6.5% conventional

$543
per month
$6,518
per year
$195,527
over 30 years
$195,527
interest saved
How gap financing works: The equity gap ($124,227) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($21,450, 5% of purchase price) and a second mortgage for the rest ($102,777 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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