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@adriaan No, I didn't miss to subtract PMI. It's part of the loan interest rate even if not on paper. In some countries, the banks are required by law to determine the interest rate considering all costs (like PMI).

@adriaan I'd see it as follow (over-simplified). Option A. $594k outstanding (90% of $660k), monthly payment of $3742 (4564 - 1001 - 179) for 30y. Implied interest rate is 6.47% Option B. $561k outstanding (85% of $660k), monthly payment of $3474 (4296 - 1001 -179), implied rate is 6.3% A...

@adriaan Which part of the 4,564.00 or 4,296.00 is a fixed amount that doesn't depend on the loan amount? Insurance, is it a house insurance? How much is it? Taxes - do they depend on the amount of the interest you pay?

@adriaan A few points. Many banks actually offer a lower loan interest rate with a higher downpayment (because less risk for them). I guess the extra interest rate in your location is called PMI. How much do you pay for 10% downpayment? and how much would you pay for 15% downpayment? For how...