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A theoretical scenario, wanted to get an opinion from you guys).
So right now the average student owes an enormous, mortgage sized debt, with an interest rate of approximately 7.3%. At that interest rate, even on a 10 year plan, half of what you pay will be Interest, rather than paying down the principal. On a 20 year plan most of what you pay is interest.
Right now, the APR on a 10 year mortgage at a fixed rate to someone with a good credit score is less than 3%.
Most physicians buy homes despite their student debt.
So, upon graduation, does it make sense to buy a 300K home, with the explicit plan of immediately remortgaging it for another 300K to pay down the student debt at the much saner APR of a mortgage? Is that possible?
So right now the average student owes an enormous, mortgage sized debt, with an interest rate of approximately 7.3%. At that interest rate, even on a 10 year plan, half of what you pay will be Interest, rather than paying down the principal. On a 20 year plan most of what you pay is interest.
Right now, the APR on a 10 year mortgage at a fixed rate to someone with a good credit score is less than 3%.
Most physicians buy homes despite their student debt.
So, upon graduation, does it make sense to buy a 300K home, with the explicit plan of immediately remortgaging it for another 300K to pay down the student debt at the much saner APR of a mortgage? Is that possible?
