How does LTV affect mortgage interest rates?

Question

My mortgage was approved putting 10% down for a purchase. My appraisal was not conducted yet, so it is 90% LTV based on the purchase price. If my appraisal comes in higher or if I put another 5% - 10% down, could this affect my interest rate? (Not taking PMI into consideration). Basically, do LTV's under 90% offer any reduction in interest rate?

Answer 1

It could. I wish I could be more specific but without knowing which lender you asking about, I simply can't give you a better answer. They fall into three categories. Some haven't and probably wont; some will give a better rate if your record is good; the last will only do it when the numbers get better.pp