Mortgage consideration for new attending

[DOC209]

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For a fresh attending moving to San Diego (~300k in total student debt, no other debt with 3 kids)... does purchasing a home off the gate ( physician loan... etc) make sense? Looking at making around 300k gross for 7 on 7 off and working an extra shifts. Trying to pay the least amount of taxes, max out retirement 401k and such. Read around a bit but still new to all this. Thanks in advance

 

[PistolPete]

I wouldn't. I'd pay down your debt first, then purchase the home. That's what I'll be doing. With your hospitalist income, especially if you work any extra shifts during your off days, you should be able to pay down your loans in 4-5 years.

 

[PaulTownMD]

Use distributed ledger debt swaps on the outstanding loans to hedge interest on debt against the growth of the liabilities you've received from the swap. There are platforms on Ethereum but I'd advise against using the Ethereum coin itself as the asset -- too risky. I'd advise either index ETFs or bonds with ratings above BBB-

 

[DOC209]

Thanks for the insight. I'm a bit confused on the pros and cons to having a mortgage early to lower ones taxable income, taking into account tradional amortization schedules. Been reading around but haven't found one solid explanation; have found partial answers that go both ways. Thanks!

 

[dpmd]

Just because you get extra tax deductions doesn't mean buying a house is better. Many people don't stay at their first job out of residency and being locked into a mortgage could hurt you if you need to move but the market has taken a downturn. Plus people may buy a more expensive house than what sort of place they might rent (and then you will feel the need to fill that house with furniture, then maybe the floors aren't quite nice enough, and you know the landscaping really could use some work, and so on). Can get very pricey especially since the type of home you can comfortably afford in that area is probably going to need some work or have old appliances (which means money when they break down).

 

[Neuronix]

Thanks for the insight. I'm a bit confused on the pros and cons to having a mortgage early to lower ones taxable income, taking into account tradional amortization schedules. Been reading around but haven't found one solid explanation; have found partial answers that go both ways. Thanks!

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