Orso Realty · Cost of the Money
A different way to compare homes
Don’t just compare the price of the home.
Compare the cost of the money used to buy it.
Same amount financed · Very different cost of money
549 Clubhouse
Existing Assumable Mortgage
3.50%
Assumable rate
$335,000 financed
Another Home
New Mortgage at Today’s Rate
6.75%
Market rate
$335,000 financed
Both paths finance the same principal. Only the cost of the money changes.
Immediate monthly difference
$466LESS PER MONTH
with 549 Clubhouse’s assumable mortgage
549 Clubhouse
$1,706
Principal & Interest
Another Home
$2,173
Principal & Interest
WHAT THE HIGHER RATE COSTS OVER TIME
5 years
YOU PAY
$55,231 MORE IN INTEREST
vs. 549 Clubhouse’s assumable mortgage
10 years
YOU PAY
$111,410 MORE IN INTEREST
vs. 549 Clubhouse’s assumable mortgage
15 years
YOU PAY
$167,001 MORE IN INTEREST
vs. 549 Clubhouse’s assumable mortgage
20 years
YOU PAY
$219,487 MORE IN INTEREST
vs. 549 Clubhouse’s assumable mortgage
549 CLUBHOUSE
549 Clubhouse mortgage paid off
while the new mortgage still has a remaining balance
5 years 8 months
paid off sooner
The long-term financial consequence
Same-horizon interest difference
$258,909
While both loans still exist
Additional interest after the assumable is paid off
$25,257
Interest the new mortgage continues to incur
Total future interest difference
$284,166 MORE IN INTEREST
YOU PAY · vs. 549 Clubhouse’s assumable mortgage
A lower asking price does not automatically mean a lower financial cost.
The cost of the money matters too.
Financing comparison is for illustrative purposes and compares principal and interest only unless otherwise stated. Rates, balances, terms and other assumptions are shown in the analysis. Loan assumption is subject to lender/servicer requirements, buyer qualification, applicable fees and approval. Taxes, insurance, HOA dues, mortgage insurance and other ownership costs are excluded unless specifically included.