Loan Comparison: 5.22% vs 6.5%

2705 Maroon Bells, Colorado Springs, CO 80918 · 4bd/2ba · $495,000

List Price
$495,000
Assumable Rate
5.22%
Remaining Balance
$444,517
Equity Gap
$50,482
Loan Type
FHA

Adjust Your Scenario

$24,750
$24,750$50,482
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 5.22% (FHA)
Blended Rate: 5.40%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,972/mo
Assumable @ 5.22% + gap loan
$2,644/mo
Assumed loan: $2,446/mo
Gap financing: $198/mo
$328less per month with the assumable

Your Savings on This Property

2705 Maroon Bells, Colorado Springs · 5.22% FHA vs 6.5% conventional

$328
per month
$3,937
per year
$118,101
over 30 years
$118,100
interest saved
How gap financing works: The equity gap ($50,482) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($24,750, 5% of purchase price) and a second mortgage for the rest ($25,732 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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