Loan Comparison: 5.5% vs 6.5%
406 Emma, Lafayette, CO 80026 · 2bd/1ba · $595,000
List Price
$595,000
Assumable Rate
5.5%
Remaining Balance
$477,069
Equity Gap
$117,930
Loan Type
FHAAdjust Your Scenario
$29,750
$29,750$117,930
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 5.5% (FHA)
Blended Rate: 5.97%
Monthly Payment Comparison
New Conventional @ 6.5%
$3,573/moAssumable @ 5.5% + gap loan
$3,387/moAssumed loan: $2,709/mo
Gap financing: $678/mo
$186less per month with the assumable
Your Savings on This Property
406 Emma, Lafayette · 5.5% FHA vs 6.5% conventional
$186
per month
$2,232
per year
$66,957
over 30 years
$66,956
interest saved
How gap financing works: The equity gap ($117,930) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($29,750, 5% of purchase price) and a second mortgage for the rest ($88,180 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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