Asked by Carla  |  Submitted October 12, 2015

Does having a down payment on a house lower the interest rate?

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  Answers  |  1

October 13, 2015

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.

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