It depends on the type of loan you are applying for. For instance, if you are getting an
FHA loan, it doesn’t change your note rate whether your put the minimum 3.5% down or 20% down payment. On the other hand, if you are getting a conventional mortgage, there is a slight difference in the cost associates with the mortgage rate for a borrower putting 5% down payment versus another borrower that puts 20% down. Finally, on a conventional mortgage putting 20% down helps you avoid the PMI which results in a lower annual percentage rate (APR).