Mortgage loan vs Dental School Student Loan

[studentdoctor22]

Hi friends,
I am considering taking a mortgage loan before starting dental school and taking dental school loan. Have anyone encountered this situation? What are the PROs and CONs of this setup? Would the dental school loan be at a higher interest rate because of the existing mortgage loan? Any advice and insights are much appreciated!

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[Big Time Hoosier]

Hi friends,
I am considering taking a mortgage loan before starting dental school and taking dental school loan. Have anyone encountered this situation? What are the PROs and CONs of this setup? Would the dental school loan be at a higher interest rate because of the existing mortgage loan? Any advice and insights are much appreciated!

What are the cons of taking out a mortgage to buy a home in this economic climate? Oh I don’t know, the market is set to crater and you’ll likely find yourself underwater on your home loan.

Big Hoss

 

[PerioDont]

can't think of many pros to doing this.

 

[DiscoverWeakly]

What is the reasoning behind taking out a mortgage now? I bought a place about a year before starting dental school, but at the time rates were below 4% and housing values were steadily increase... Now, it would be a REALLY tough sale. Also, if this is just for a single family home, I wouldn't recommend. I bought a duplex before dental school that allows me to live more cheaply than any rent I could find in the area (albeit after paying a premium to by the place). I doubt the mortgage would impact the rate of your student loans, but you would be swimming in debt!

 

[flamingo93]

I did this and my interest rate was 3.6%. My morgage every month is cheaper than rent in my city and I’m less within 6 minutes of school. It depends on your situation and if it makes sense financially.

 

[TheSweetTooth22]

They are separate loans and if you got them in that order - mortgage first, school loan second - they would not affect eachother.

I bought a house before dental school and it is now a rental (different cities) - i get extra income during school which is nice. If you’re planning on doing something similar and holding the property for 20+ years then it really doesn’t matter what the housing market climate looks like right now.

 

[Cold Front]

Hi friends,
I am considering taking a mortgage loan before starting dental school and taking dental school loan. Have anyone encountered this situation? What are the PROs and CONs of this setup? Would the dental school loan be at a higher interest rate because of the existing mortgage loan? Any advice and insights are much appreciated!

I don’t think they are related. Mortgages are underwritten and will look at your income and debt to get approved. Those rates are currently floating around 7% for the 30y fixed, and that follows the 10y treasury bond, which changes from day to day and heavily rely on your credit score. While federal student loans are almost like a blank check, they won’t check your mortgage, credit card or other debts to get approved. You just need to confirm you are accepted into d school. Unlike mortgage rates, the student loan interest rates are set every July by the government and remain the same throughout the academic year.

Personally, not the best time to get a mortgage loan. High home values + high interest rates + imminent recession = you will take a L when the economy rolls over. I would hold those plans off for another year for 2.