Don’t go under the dollar threshold ($40,000) put the extra money in a money market or CD. Fix something on the house with extra money.
Remember to have six months or MORE of mortgage payments in a savings account.
There are banks lending at 3.65 % but for 15 year mortgages and about 3.8% for 30 year.
It is not the government that is say not mortgages under $40K it is the BANK.