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Do I get a better interest rate if I borrow over 150,000

I am purchasing a home for 310,000. I have the funds to make a large downpayment but I was told by someone that I need to keep the loan over 150,000 for a better interest rate
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September 11 2013 - Steamboat Springs
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Answers (4)

Yes, certain loan amounts can affect pricing. I'm just curious what type of rate are they offering? Then we can tell you if you're getting a fair shake.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me.

Good Luck!
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September 13 2013
To be technically correct, the answer is NO. There is no better rate for a higher loan amount. The same rate is always available, just at a higher fee. 

Contrary to popular belief, rates don't change, the cost to acquire them does. If a lender has a pricing adjustment for a loan under $150,000, it doesn't mean you cannot get that rate, it just means you have to pay more to get it. Find out how much more that is and then apply math to determine your best move.
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September 12 2013
It depends on the lender.  I have worked for lenders in the past that adjusted the pricing upward as the loan balance decreases.  This is a common practice, but it is not universal among all lenders.  I recommend getting pricing from at least 2 lenders to keep them honest.

Best Wishes.
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September 11 2013
There is slight price improvement as your loan amount goes up. But it's usually not worth borrowing more just for better pricing.
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September 11 2013
 
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Do I get a better interest rate if I borrow over 150,000
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September 13 2013 | 4 answers
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