Can you bargain a lower rate with higher down payment?

Question

If you place a large down payment can you lower the mortgage rate?

Answer 1

Your down payment definitely affects your mortgage rate.  To see Mortgage Rate Charts, visit:

http://www.simplyfinance.co.uk/calculato...

this will help you see how your down payment will determine your rate.

Answer 2

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.  

Answer 3

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.

Answer 4

Very possibly.  Check several lenders to see who has the best terms.