Loan Comparison: 3.89% vs 6.5%

12324 2nd, Aurora, CO 80011 · 2bd/3ba · $320,000

List Price
$320,000
Assumable Rate
3.89%
Remaining Balance
$83,148
Equity Gap
$244,882
Loan Type
FHA

Adjust Your Scenario

$16,000
$16,000$244,882
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 3.89% (FHA)
Blended Rate: 7.27%

Monthly Payment Comparison

New Conventional @ 6.5%
$1,921/mo
Assumable @ 3.89% + gap loan
$2,152/mo
Assumed loan: $392/mo
Gap financing: $1,760/mo

Your Savings on This Property

12324 2nd, Aurora · 3.89% FHA vs 6.5% conventional

$0
per month
$0
per year
$0
over 30 years
$0
interest saved
How gap financing works: The equity gap ($244,882) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($16,000, 5% of purchase price) and a second mortgage for the rest ($228,882 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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