Loan Comparison: 2.87% vs 6.5%

4687 Fencer, Colorado Springs, CO 80911 · 3bd/3ba · $415,000

List Price
$415,000
Assumable Rate
2.87%
Remaining Balance
$353,561
Equity Gap
$61,438
Loan Type
VA

Adjust Your Scenario

$20,750
$20,750$61,438
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.87% (VA)
Blended Rate: 3.45%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,492/mo
Assumable @ 2.87% + gap loan
$1,779/mo
Assumed loan: $1,466/mo
Gap financing: $313/mo
$713less per month with the assumable

Your Savings on This Property

4687 Fencer, Colorado Springs · 2.87% VA vs 6.5% conventional

$713
per month
$8,557
per year
$256,723
over 30 years
$256,722
interest saved
How gap financing works: The equity gap ($61,438) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($20,750, 5% of purchase price) and a second mortgage for the rest ($40,688 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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