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).