Physician Mortgage Loan

[Tenk]

Anyone find one with an APR below 4.25%?

Thanks.

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[Shikima]

Still a good rate.

 

[JRO38]

Mine is 3% However, I have a 7-1 ARM (plan on moving after fellowship). Generally, if you get an ARM your rate will be lower - I'm guessing yours is fixed and I haven't heard/seen any fixed below 4% from my fellow colleagues. But after looking at my grad plus interest rate, 4% isn't bad.

 

[DoctwoB]

Mine is 3% However, I have a 7-1 ARM (plan on moving after fellowship). Generally, if you get an ARM your rate will be lower - I'm guessing yours is fixed and I haven't heard/seen any fixed below 4% from my fellow colleagues. But after looking at my grad plus interest rate, 4% isn't bad.

Definitely recommend a 5 or 7:1 ARM for residents. Even if you stay in the same home after residency you have the option of refinancing later.

 

[NightFury]

I did get pre-approved for a rate less than 4%, but actually ended up choosing a loan (7/1 ARM) for 4.25%, because the lender is a credit union associated with the hospital, it's reputable/well-known, and it is used to working with residents (note this was a "resident loan" where they ignored my school loan debt when calculating DTI). The other company was from another state but offers "physician" or "resident" loans, and although they seemed to have good service when I worked with them, I was concerned that things might fall through last minute. My realtor really wasn't comfortable using them either since he had never heard of them and has had a couple bad experiences with unfamiliar physician lenders before. However my rate with them was also for a VA loan so may have been lower than usual. If you're interested in this company, you can PM me for details. I will also warn you that another reason I was glad I didn't go with them, is because I heard of them through GLAdvisor, and that company ended up being a scam.

 

[Wordead]

My 7/1 was 3.05. Was offered a 5/1 for less than 3 but decided to go with the 7. Local bank.

 

[JRO38]

I did get pre-approved for a rate less than 4%, but actually ended up choosing a loan (7/1 ARM) for 4.25%, because the lender is a credit union associated with the hospital, it's reputable/well-known, and it is used to working with residents (note this was a "resident loan" where they ignored my school loan debt when calculating DTI). The other company was from another state but offers "physician" or "resident" loans, and although they seemed to have good service when I worked with them, I was concerned that things might fall through last minute. My realtor really wasn't comfortable using them either since he had never heard of them and has had a couple bad experiences with unfamiliar physician lenders before. However my rate with them was also for a VA loan so may have been lower than usual. If you're interested in this company, you can PM me for details. I will also warn you that another reason I was glad I didn't go with them, is because I heard of them through GLAdvisor, and that company ended up being a scam.

My rate of 3% was with physicianloans.com. It was out of state and my realtor had also never heard of them - not sure if GLAdvisor recommended them or not. However, I recently closed on my house on time and the realtor commented that my mortgage application/underwriting process was one of the smoothest they have had so far this year. I think when buying a house, it has more to do with WHO is doing it (realtor, buyer, seller, loan officer, underwriter) and less to do with the company (although some companies do have different policies which can speed up/slow down the process). Just my experience, though. Congrats on the house or condo.

 

[link2swim06]

Mine is 3% However, I have a 7-1 ARM (plan on moving after fellowship). Generally, if you get an ARM your rate will be lower - I'm guessing yours is fixed and I haven't heard/seen any fixed below 4% from my fellow colleagues. But after looking at my grad plus interest rate, 4% isn't bad.

Refinance?

My student loans are at 4.25% and I just graduated in 2014.

 

[JRO38]

If by refinance you mean exchanging federal student loan debt for private loan debt at a lower interest rate, I have reservations for a few reasons:
1) You lose the ability to go into residency deferment/forbearance for entire duration of residency program
2) Lose ability to do IBR/PAYE
3) Can't qualify for loan forgiveness programs

I'm sure it depends on the terms of the private loan contract you sign, but I feel that the extra safety nets/perks of federal loans outweigh the interest reduction in my personal situation. I'm sure for some people it may make sense, but I really need the financial flexibility (especially if my 12+ year old car decides to die soon).

 

[link2swim06]

If by refinance you mean exchanging federal student loan debt for private loan debt at a lower interest rate, I have reservations for a few reasons:
1) You lose the ability to go into residency deferment/forbearance for entire duration of residency program
2) Lose ability to do IBR/PAYE
3) Can't qualify for loan forgiveness programs

I'm sure it depends on the terms of the private loan contract you sign, but I feel that the extra safety nets/perks of federal loans outweigh the interest reduction in my personal situation. I'm sure for some people it may make sense, but I really need the financial flexibility (especially if my 12+ year old car decides to die soon).

Not exactly. Private loan companies will pseudo-defer too (i.e. for DRB you only pay $100/mo while you are a resident/fellow). Which is actually less than IRB or PAYE. You save about $20K-$40K in interest if you have a 200K loan and qualify for the lowest rate.

Unless you know you are going to work for a government agency or a nonprofit then all the forgiveness things kinda go out the window.

But if loan forgiveness is your thing then the interest rate doesn't matter much anyhow...you will never pay it regardless.