Borrowers with less equity in their homes are seen as bigger risks, meaning that they'll pay higher interest rates and insurance costs. (valuepenguin.com)
In addition, home owners with less equity in their homes will have a more difficult time refinancing their mortgage. (blog.HomeForeclosureAdvisors.com)
With a down payment of 5 % or less, you should expect to pay a higher rate as you are starting with less equity as collateral. (hzcu-mortgage.org)