20% down at 4.875% OR 25% down at 4.5%

[Kris McLamb]

Hi!

Attempting to purchase my first investment property and was asked a question by a lender I wasn't expecting.  20% down payment for a 4.875% rate or 25% down payment for a 4.5% rate.  The math seems to be in favor of the 25% down payment as it will give a higher cash return each year over the 30 year term.  I'd like to hear others thoughts on comparing the two.  Maybe I'm missing something?  I plan to keep this property for at least 20 years if not well beyond the 30 year mortgage.

Thanks!