Question by booie: Can you bargain a lower rate with higher down payment?
If you place a large down payment can you lower the mortgage rate?
Best answer:
Answer by Judy
Very possibly. Check several lenders to see who has the best terms.
What do you think? Answer below!
Depends on your credit, but the more money you can put up front, will help your cause as it will show you are willing to risk something.
Yes.
I’m a lender and on the whole, the more you pay down, the lower the rate.
However, you goal should only need to be to get the loan-to-value around 80% or lower.
Take the market value of the property and try to pay 20% down and you will get the best rate. If you pay more, you may be able to negotiate a lower rate, but keep in mind that banks / lenders are tough on loans now as the risk is perceived has higher, and so they may not be as willing to agree to a rate reduction as they were a year ago.
Your down payment definitely affects your mortgage rate. To see Mortgage Rate Charts, visit:
http://www.simplyfinance.co.uk/calculators/Mortgage-Payment-Calculator.html
this will help you see how your down payment will determine your rate.