Does having a down payment on a house lower the interest rate?
Probably not the way you're thinking. Having downpayment may qualify you for different loan programs - zero down options have different rules/rates than 5% down options, In most cases, the rate isn't driven by money down though, particularly with good credit scores.
You MAY get different prices for a rate in 5% downpayment increments - a 10% down loan may be a slightly lower cost than a 5% down loan, but chances are the rate doesn't change.
Putting down money in less than 5% increments does nothing for your price or rate. 8% down is the same price as 5%. Only your principle would change in that case.
| 10.13.15 @ 19:41