Loan Comparison: 2.74% vs 6.5%

14823 116th, Commerce City, CO 80603 · 3bd/3ba · $450,000

List Price
$450,000
Assumable Rate
2.74%
Remaining Balance
$361,453
Equity Gap
$87,700
Loan Type
FHA

Adjust Your Scenario

$22,500
$22,500$87,700
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 2.74% (FHA)
Blended Rate: 3.62%

Monthly Payment Comparison

New Conventional @ 6.5%
$2,702/mo
Assumable @ 2.74% + gap loan
$1,975/mo
Assumed loan: $1,474/mo
Gap financing: $501/mo
$727less per month with the assumable

Your Savings on This Property

14823 116th, Commerce City · 2.74% FHA vs 6.5% conventional

$727
per month
$8,725
per year
$261,746
over 30 years
$260,899
interest saved
How gap financing works: The equity gap ($87,700) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($22,500, 5% of purchase price) and a second mortgage for the rest ($65,200 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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