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Reply to "Down payment size, would you do 50%"
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[quote=Anonymous]Get them to price the loan at different down payment percentages. I actually found that a 40-50% downpayment can have a slightly higher interest rate than a 30% downpayment on a 30Y loan because the bank makes less money off you. 30% or 50% downpayment has very similar credit risk to the bank; essentially 0% chance of default. So the bank needs to make its money, either through the rate or a larger monthly interest payment (because you borrowed more). That said, every extra dollar of downpayment you toss at the house is a guaranteed annual return of 7% over 30 years. That's a fantastic risk free return on investment. [/quote]
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