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!
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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.