Yes this is what most would think from a risk view, larger down payment less risk! However, the government made changes for conventional mortgages January 2018 that impacted lenders and why rates are different.This quote is hidden because you are ignoring this member. Show Quote
The government decided that lenders required to hold more capital for conventional mortgages in order to share in the risk. In a nutshell, if the lenders have to hold more capital on their books, they are not making as much money which means their costs for that money goes up. The end result is that lenders needed to make up the losses by passing the cost to consumers... and in this case as it is related to mortgages, the rates are slightly higher.
And the rates are potentially higher for refinances and rental properties...
This has complicated the "what is your lowest rate" question. It is not one rate fits all anymore.