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Does a bigger down payment lower my rate?

Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Often yes. A larger down payment lowers your loan-to-value ratio, which can move you into a better rate tier and reduce or eliminate PMI. The biggest improvements come at key thresholds like 20% down.

Beyond a point, extra down payment helps the payment more than the rate. We'll show where additional down payment actually buys you a lower rate versus just a smaller balance.

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