Mortgage % rates w/ large down payments

Mortgage % rates w/ large down payments
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The mortgage lender I plan to use for my construction loan is showing the following rates.

30 year fixed is 5.90%
10/1 ARM is 4.75%
7/1 ARM is 4.60%
5/1 ARM is 4.50%

If I put down 40% or $100,000 can I negotiate a lower rate? I assume so, and if so, how much of a reduction can I expect to receive?



I would assume so as well, but I don’t have experience with construction loans. Maybe someone else out there does? And are you considering a construction-only loan or one with a mortgage?


The construction loan, once the occupancy permit has been issued, converts to a standard mortgage. The interest rates seem to be about the same as a conventional loan. They do however require the home owner to put down a minimum of 20%. During the building process the builder draws funds has necessary. The down payment money is used first, once the banks money is used the home owner pays interest only payments until the home is completed.