<prompt> Human: Ok, I was having a conversation recently with an older co-worker about finances and buying a house. I told him I was saving up enough for a 20 down payment. Yet he insisted that this wasnt the right way to go about it. Trust me, he said. Ive made that mistake. What you want to do is take out a loan for the entire amount, pay nothing down, then take the money youve saved and put it toward the loan. His reasoning? Ill end up paying more for the house if I make a down payment, because they will add fees or whatnot will make up the difference. That is, if I pay down 20k on a 100k house, Ill still end up needing a 100k loan and will end up paying 120k. So I should get a 100k loan and pay off 20k right away, so now I owe 80k.This all sounds insane to me, but the guy is a homeowner...so what could he be going on about? Is there any validity behind this? Im inclined to disregard what hes saying...he didnt go into great detail about how they will get your money.  <response>: You will probably be made to buy two loans, one for the 20 down payment at a higher interest rate, and then another one at a lower interest rate to cover the rest. His thinking is absolutely nonsensical. He is suggesting theyll pull a 4 square type deal over on you. 