Can I get a lower rate with more money down?

You ask a lender if you can get a lower rate with a larger down payment. Instead of providing rate quotes, the lender deflects into qualification questions and strategy confusion.

But, here's what's really happening...

Now that you understand the tactic, let's look at the three most common angles lenders use to deflect down payment questions.

➡ Three Ways Lenders Deflect Down Payment Questions

Angle 1: Information Gathering

Lender says: "How much more are you thinking about putting down? The more you put down, the lower your rate can be. But I need to know your situation to give you an accurate rate quote."

Most people respond: "I'm thinking about putting down 15%. What rate could I get with that?"

Don't do that. This lender is using accuracy as justification to extract your specific down payment plan before providing ANY rate information. While down payment DOES affect rates, lenders can quote rates for standard scenarios (10%, 15%, 20% down) without knowing your specific plan. By disclosing your exact down payment amount to this lender first, you've narrowed your options and lost the flexibility to compare how different lenders price different scenarios.

Angle 2: Qualification Requirement

Lender says: "Lower rates with more money down depends on your financial situation. Are you even able to put more down? Let me ask you a few questions about your finances so I can see what options you have."

Most people respond: "Yes, I could put down up to 20% if it makes sense. Let me tell you about my finances."

Don't do that. This lender is framing down payment strategy as dependent on full financial qualification—implying you need to justify your ability before getting rate information. While lenders need to verify finances eventually, they can provide scenario-based rate quotes (10%, 15%, 20% down) before qualification. By disclosing your financial capacity before seeing their pricing, you've committed information without knowing if they're competitive.

Angle 3: Strategic Confusion

Lender says: "Are you looking to put down more money to get a lower rate, or to avoid mortgage insurance? Those are two different strategies with different outcomes. We need to figure out your goals before I can give you rate information."

Most people respond: "I guess I need to avoid PMI. So what rate would I get with 20% down?"

Don't do that. This lender is reframing your rate question as a strategic choice that requires goal-setting before pricing disclosure. While goals DO matter, this confusion tactic avoids answering your rate question entirely. You can (and should) compare rates AND total costs at multiple down payment levels—this isn't an either/or choice. The lender wants you to pick a strategy before seeing whether their pricing for that strategy is competitive.

The Pattern

Notice that in all three scenarios, the lender successfully avoided providing scenario-based rate quotes by making you disclose personal information, financial capacity, or strategic preferences first. Get scenario-based pricing from all lenders before disclosing specifics.

➡ What You Should Say Instead

Regardless of which deflection angle the lender uses, your response remains the same:

I understand down payment affects rates, and I appreciate that. Can you provide rate quotes for a few standard scenarios—10% down, 15% down, and 20% down on a $400K loan—so I can see how down payment impacts rates at your company? I'd like to compare these scenarios across multiple lenders, then I can decide which down payment level makes the most sense and provide detailed information.

Here's why this response works for all three angles:

• For Angle 1 (Information Gathering): Requests scenario-based pricing without disclosing your specific plan
• For Angle 2 (Qualification Requirement): Separates pricing comparison from financial qualification
• For Angle 3 (Strategic Confusion): Requests multiple scenarios so you can compare strategies based on competitive pricing

The script treats down payment scenarios as pricing information you need to make informed decisions—not personal details to disclose before shopping.

➡ Key Takeaway

Lenders can provide rate quotes for multiple down payment scenarios without your personal details. Get scenario-based pricing from multiple lenders to understand how down payment affects your total cost, then choose your down payment strategy based on competitive comparison—not premature disclosure.