20 or 25% down? - 1st investment property

[Brett Lampe]

Lender is telling me we can get .5% rate reduction if we go with 25% down. This is a buy and hold long term investment (Joe Asamoah style) if everything breaks right. I'm unsure if it's more valuable to keep more of my cash for other potential investments or go with the higher down payment for greater interest savings over time. Help!

Expected rent of $2890 - Home is move in ready. Self managing, pretty handy, live 7 minutes away. 

20% - 3.875 - $67,000 (dp) - total interest $185,684 - PITI $1681

25% - 3.375 - $83,750 (dp) - total interest $148,626 - PITI $1532

Thoughts? What info am I leaving out that is helpful to know? Thanks!

[Greg Scott]

20% all day long.

• Higher ROI 22% Cash on cash vs 19% cash on cash
• Another $16,750 in the bank for a rainy day or to build towards a future investment