Loan Comparison: 2.88% vs 6.5%

39445 Main, Eaton, CO 80615 · 5bd/3ba · $640,000

List Price
$640,000
Assumable Rate
2.88%
Remaining Balance
$534,988
Equity Gap
$105,012
Loan Type
VA

Adjust Your Scenario

$32,000
$32,000$105,012
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.88% (VA)
Blended Rate: 3.55%

Monthly Payment Comparison

New Conventional @ 6.5%
$3,843/mo
Assumable @ 2.88% + gap loan
$2,782/mo
Assumed loan: $2,221/mo
Gap financing: $561/mo
$1,061less per month with the assumable

Your Savings on This Property

39445 Main, Eaton · 2.88% VA vs 6.5% conventional

$1,061
per month
$12,726
per year
$381,787
over 30 years
$381,787
interest saved
How gap financing works: The equity gap ($105,012) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($32,000, 5% of purchase price) and a second mortgage for the rest ($73,012 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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