What price alone does not show

Don't just compare the price of the home.

Compare the cost of the money used to buy it.

Same amount borrowed. Different cost to borrow it.

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

The cost of the money is the interest you pay to borrow it.

Both loans borrow the same $335,000. The rate, the payment, and the payoff date are not the same.

Immediate monthly difference

$466

less per month

5 years 8 months

sooner to payoff

Lower payment and shorter loan. Those two normally move in opposite directions.

549 Clubhouse

$1,706

Principal & Interest

Another Home

$2,173

Principal & Interest

What the higher rate costs over time

Comparison is against another home at today's rate.

5 years

You pay $55,231 more in interest than at 549 Clubhouse.

549 Clubhouse

$54,621

Another Home

$109,852

10 years

You pay $111,410 more in interest than at 549 Clubhouse.

549 Clubhouse

$100,085

Another Home

$211,495

15 years

You pay $167,000 more in interest than at 549 Clubhouse.

549 Clubhouse

$134,644

Another Home

$301,644

20 years

You pay $219,487 more in interest than at 549 Clubhouse.

549 Clubhouse

$156,215

Another Home

$375,702

Over the life of the loan

You pay $284,166 more in interest than you would with 549 Clubhouse's assumable mortgage.

How this is calculated

Both loans finance $335,000. 549 Clubhouse carries a 3.50% assumable mortgage with 292 payments remaining. A new mortgage at 6.75% runs 360 payments. Total interest on the assumable mortgage is approximately $163,000. Total interest on a new mortgage is approximately $447,000. The difference includes $25,257 in interest that the other home's mortgage keeps building during the five years and eight months after 549 Clubhouse is already paid off.

A lower asking price does not automatically mean a lower total cost.

The cost of the money matters too.

See the home behind the numbers.

View 549 Clubhouse →

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.