Loan Comparison: 3.88% vs 6.5%

381 Ames, Lakewood, CO 80226 · 2bd/2ba · $255,000

List Price
$255,000
Assumable Rate
3.88%
Remaining Balance
$152,536
Equity Gap
$102,463
Loan Type
FHA

Adjust Your Scenario

$12,750
$12,750$102,463
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 3.88% (FHA)
Blended Rate: 5.59%

Monthly Payment Comparison

New Conventional @ 6.5%
$1,531/mo
Assumable @ 3.88% + gap loan
$1,408/mo
Assumed loan: $718/mo
Gap financing: $690/mo
$124less per month with the assumable

Your Savings on This Property

381 Ames, Lakewood · 3.88% FHA vs 6.5% conventional

$124
per month
$1,484
per year
$44,515
over 30 years
$44,514
interest saved
How gap financing works: The equity gap ($102,463) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($12,750, 5% of purchase price) and a second mortgage for the rest ($89,713 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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