New Conventional Mortgage vs. Assumable FHA Mortgage

Sale Price 1 million ($1,000,000)

Interest Rate 6.50% vs. 3.50%

Loan Amount: $800,000 for both

Second Mortgage / HELOC: $0 for Seller / $100,000 at 6.5% for Buyer

Monthly Principal & Interest: $5,057 vs. $3,593 + $675 = $4,268

Taxes & Insurance: Varies by property

Down Payment: $100,000 (10% down) for new buyer

Remaining Term: 360 months (30 years) vs. 300 months (25 years)

Savings Per Month: $789

Total Payments: $1,820,354 vs. $1,367,852

Savings by Assuming Existing Loan: $452,502

** This is just an example, each assumable loan is different. Talk to our team about possibilities.

** Interest rate, monthly principal & interest payment, taxes and insurance, and length of loan remaining all vary based on original loan terms.