Loan Comparison: 5.41% vs 6.5%

1881 95th, Thornton, CO 80229 · 3bd/1ba · $399,000

List Price
$399,000
Assumable Rate
5.41%
Remaining Balance
$324,783
Equity Gap
$74,217
Loan Type
FHA

Adjust Your Scenario

$19,950
$19,950$74,217
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 5.41% (FHA)
Blended Rate: 5.85%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,396/mo
Assumable @ 5.41% + gap loan
$2,243/mo
Assumed loan: $1,826/mo
Gap financing: $417/mo
$153less per month with the assumable

Your Savings on This Property

1881 95th, Thornton · 5.41% FHA vs 6.5% conventional

$153
per month
$1,834
per year
$55,009
over 30 years
$55,009
interest saved
How gap financing works: The equity gap ($74,217) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($19,950, 5% of purchase price) and a second mortgage for the rest ($54,267 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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