Loan Comparison: 4.2% vs 6.5%
2640 Race, Denver, CO 80205 · 2bd/1ba · $625,000
List Price
$625,000
Assumable Rate
4.2%
Remaining Balance
$258,756
Equity Gap
$367,022
Loan Type
VAAdjust Your Scenario
$31,250
$31,250$367,022
8.50%
5%10%
Second mortgage rate on the equity gap
Conventional Rate: 6.5% (30yr fixed)
Assumable Rate: 4.2% (VA)
Blended Rate: 6.63%
Monthly Payment Comparison
New Conventional @ 6.5%
$3,753/moAssumable @ 4.2% + gap loan
$3,847/moAssumed loan: $1,265/mo
Gap financing: $2,582/mo
Your Savings on This Property
2640 Race, Denver · 4.2% VA vs 6.5% conventional
$0
per month
$0
per year
$0
over 30 years
$0
interest saved
How gap financing works: The equity gap ($367,022) is the difference between the home price and the remaining loan balance. You cover this with a down payment ($31,250, 5% of purchase price) and a second mortgage for the rest ($335,772 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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