Loan Comparison: 2.83% vs 6.5%

7637 Benecia, Fountain, CO 80817 · 3bd/3ba · $420,000

List Price
$420,000
Assumable Rate
2.83%
Remaining Balance
$308,265
Equity Gap
$123,595
Loan Type
VA

Adjust Your Scenario

$21,000
$21,000$123,595
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.83% (VA)
Blended Rate: 4.25%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,522/mo
Assumable @ 2.83% + gap loan
$2,060/mo
Assumed loan: $1,272/mo
Gap financing: $789/mo
$462less per month with the assumable

Your Savings on This Property

7637 Benecia, Fountain · 2.83% VA vs 6.5% conventional

$462
per month
$5,538
per year
$166,147
over 30 years
$178,007
interest saved
How gap financing works: The equity gap ($123,595) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($21,000, 5% of purchase price) and a second mortgage for the rest ($102,595 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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