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How big of a down payment do I need to put forth to get the best rates on a conventional loan?

by JRedman from Winchester, Virginia. Mar 21st 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,650 contributions

although most are correct here in stating that 20% down give you a huge break since you don't need mortgage insurance, and 30% down or more will give you the best rate, I would say that your far better off sticking to 20%.. The difference in your rate with an additional 10% down will be minimal, and that extra 10% is better off in your bank then applied to your home.. If you're dealing with a local bank, you will never get the best advice when it comes to varying scenarios.. for this reason, I recommend you speak to a licensed mortgage broker... they won't just take your application, but they can put together several loan scenarios showing you the difference in the down payment and varying interest rates.. Only then can you make the best decision.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 21st 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,895 contributions

Typically you get your best pricing (interest rates) below 70% loan-to-value. Most people target below 80%, because then is where you no longer need to deal with PMI (mortgage Insurance). Below 70% usually doesn't get you anything better. www.JoeMetzler.com (651) 552-3681

Mar 21st 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

I would have to say that at least 20% down and pricing can even improve incrementally up to 30 or 35% down.

Mar 21st 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

The down payment for your best rate is usually 30% down, but a lower DTI (debt to income ) ratio will also help alot. www HOMEMORTGAGEXPERT.COM 855 411 LEND PETER SAVINO

Mar 21st 2013
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Abdi Mohammadian (mohammadian)
#864 ranked lender in California - 33 contributions

20% to 30% down to get a good rate.

Mar 21st 2013
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

Rates are determined by credit score the LTV will adust the pricing somewhat by a percentage on a conventional loan, FHA wil have no adjustments and can avoid MI with 10% down with a 15 year mortgage. I can be reached 888-798-3832 or ballen@monarchmortgage.com

Mar 21st 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

20% down is your best option.

Mar 21st 2013
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George Dokos (georgedokos@movementmortgage)
#57 ranked lender in Virginia - 25 contributions

A 20% down payment will eliminate PMI, putting 30% down may give you slightly better pricing. You would have to decide what size down payment fits your financial plans. Please try to remember that an eighth of a percent difference in the rate on a $200,000 dollar loan is only $14.00 per month. Putting down 20% is the ideal LTV (loan to value ratio) for a lender. You can put down much less and apply for an FHA loan with only 3.5% down payment but you will have PMI for the life of the loan.If you want to go over your options please feel free to give me a call at my office.Regards, George

Mar 21st 2013
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Mike Cooper (mikecooper)
#24 ranked lender in Virginia - 8 contributions

JRedman, Let's first answer your question: the best rates are given to the people with the lowest risk- so if you have 40% down you would get a better rate than if you only have 20% or 10% or 5%- There are multiply factors that determine rate, as a matter of fact some government loan have better rates than conventional loan and you can put LESS money down, give me a call when you have the opportunity- my cell # is 540-664-4700. Also, do you know anyone who wants to purchase, build or refinance a home? I would sincerely appreciate a personal referral from you. Thank you!http://www2.primelending.com/sigs/pl_sig_1/lynch_mark_peter-01-01-01.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_facebook.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_twitter.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_blogger.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_linkedin.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_youtube.png "More people choose Mark Peter Lynch to finance their homes then any other originator in the area" Mortgage Originator Magazine 1998-2009 Think Mortgage, Think Mark!

Mar 21st 2013
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Michael Bardy (LendingPro)
#24 ranked lender in Ohio - 72 contributions

It is going to depend on your credit score. In the case that you have a 740 score or better our rates will be the same from 10% down to 30% down. As the score goes down the impact on the interest rate increases.20% down to avoid MI in all cases.

Mar 21st 2013
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Mike Cooper (mikecooper)
#24 ranked lender in Virginia - 8 contributions

JRedman, I had my friend Mark Peter Lynch of Prime Lending in Winchester, VA offer an answer. Let's first answer your question: the best rates are given to the people with the lowest risk- so if you have 40% down you would get a better rate than if you only have 20% or 10% or 5%- There are multiply factors that determine rate, as a matter of fact some government loan have better rates than conventional loan and you can put LESS money down, give me a call when you have the opportunity- my cell # is 540-664-4700. Also, do you know anyone who wants to purchase, build or refinance a home? I would sincerely appreciate a personal referral from you. Thank you!http://www2.primelending.com/sigs/pl_sig_1/lynch_mark_peter-01-01-01.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_facebook.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_twitter.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_blogger.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_linkedin.pnghttp://www2.primelending.com/sigs/pl_sig_1/sm_youtube.png "More people choose Mark Peter Lynch to finance their homes then any other originator in the area" Mortgage Originator Magazine 1998-2009 Think Mortgage, Think Mark!

Mar 21st 2013
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

My advice is to put down at least 20% to avoid monthly PMI. Of course the lower the loan to to value will make a difference in the rate.I am a licensed Mortgage Branch Manager here in the state Virginia so call me or email me and we can discuss it in more detail. jcherry@loansimple.com. 804-556-0685.

Mar 22nd 2013
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Jason Robinson (CFIsupport)
#58 ranked lender in Georgia - 106 contributions

40% for the "best". - Your choice of words : ). Usually 25% will give you close to the lowest without having to give up so much cash.

Mar 22nd 2013
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