20% down with 4% interest or 25% down with 3.5% interest?

[Joshua Sun]

Looking to buying a first investment property, and we were curious if it makes more sense to put in more money down for a lower interest rate or save that extra money to jump start the next investment property purchase. 

The property will cash flow either way. 

[Timothy Boyd]

Hey @Joshua Sun!  Congrats on getting into it!  I am no expert, but I would say it depends how long you plan on holding the property.  If long-term buy and hold, I would say try to lock in the lowest rate that you can.  You or your lender should be able to calculate the interest savings over the life of the loan if you choose 3.5% vs 4.0%.  Unless you can make more than the interest savings with the money you wouldn't put down, I say go for the 3.5%.  Just my two cents!  Good luck!