Should I put down an extra 5% in order to get a lower rate?

[Account Closed]

My lender provided me a rate of 6.375%. This is for a 20% downpayment. If I put down 25%, I can get the rate lowered to 5.75% (a decrease of 0.625%.

This does raise my cash on cash return. Should I do the 20% or 25% down?

Appreciate any advice.

[Ryan Beasley]

@Steve Johnson

This truly depends on your own personal financial situation and the purchase price of the deal. With all other variables held constant it seems like a good risk/return but what if you truly need that money for other deals, personal expenses, property reserves, etc.?

I’ve researched and practiced the technical side of real estate a lot but the non-technical side is what has damn near killed 87% of agents and all the investors that get out of the business. Whatever decision makes your head rest easiest on the pillow and still provides your hurdle rate is what’s best.