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estimating monthly costs for a home on physician mortgage

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  • estimating monthly costs for a home on physician mortgage

    I am debating whether or not to rent/buy in an area I know I will stay for at least five years. (significant other accepted to doctorate program there).

    Is there a way I can get a ballpark figure of monthly cost of a hypothetical home that meets my budget, like a physician mortgage monthly payment calculator?

    Thanks for your advice.

  • #2
    its the same as a regular mortgage payment calculator. you just have <20% down payment.....
    also impossible for us to tell you as you need to account for taxes and insurance which is literally different in every city.

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    • #3
      Just to note, a 5 year doctoral program does not justify a home purchase. It puts it on the lowest rung of potentially being financially justified.

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      • #4
        I see. I will be moving from a high cost of living city to a much lower smaller town. already used to a big chunk of our income (50% of my salary) going to rent, I had assumed I could afford the typical monthly payment for a physican's mortgage loan.

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        • #5
          Originally posted by Tim View Post
          Just to note, a 5 year doctoral program does not justify a home purchase. It puts it on the lowest rung of potentially being financially justified.
          while I agree with this, plenty of 5-year doctoral programs end up being 6, 7, or even longer programs

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          • #6
            Originally posted by psycho305 View Post
            I see. I will be moving from a high cost of living city to a much lower smaller town. already used to a big chunk of our income (50% of my salary) going to rent, I had assumed I could afford the typical monthly payment for a physican's mortgage loan.
            Being able to afford a home and deciding you need to buy a home are not necessarily related.

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            • #7
              Originally posted by psycho305 View Post
              I had assumed I could afford the typical monthly payment for a physican's mortgage loan.
              Typical monthly payment is highly variable. And it is only one part of the total cost of home ownership. You will need to provide a lot more information if you want useful answers. The basic rule of thumb is mortgage <2x annual income.

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              • #8
                Originally posted by pierre View Post

                Typical monthly payment is highly variable. And it is only one part of the total cost of home ownership. You will need to provide a lot more information if you want useful answers. The basic rule of thumb is mortgage <2x annual income.
                I will be doing a year of fellowship (with moonlighting) and then transition to attending. The house budget I have in mind is definitely <2 and is probably closer to 1X annual income of attending salary.

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                • #9
                  Originally posted by psycho305 View Post
                  I see. I will be moving from a high cost of living city to a much lower smaller town. already used to a big chunk of our income (50% of my salary) going to rent, I had assumed I could afford the typical monthly payment for a physican's mortgage loan.
                  I don’t think the question is can you afford the payment. I empathize, but still in “training” that deferred gratification is wise.
                  The concept is to purchase a house once the location you will actually live and work permanently that meets your needs.
                  Rule of thumb would be 2 years employed where you want to live and work,
                  Mortgage at 2x gross is the max mortgage ROT.

                  The 5 years is basically the minimum amount of time that the costs of a mortgage can pay benefits, not a buy vs rent.

                  Better choice might be to invest ir save for a downpayment when you need it.

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                  • #10
                    If you can get solid inputs, this one is pretty good. It was spot on for us. https://www.nerdwallet.com/mortgages...rtgage-payment

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                    • #11
                      This site was helpful for me...
                      The choice between buying a home and renting one is among the biggest financial decisions that many adults make.

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                      • #12
                        Originally posted by Otolith View Post
                        This site was helpful for me...
                        I really like the NYTimes website calculator. But it was made before the new tax laws. Is there a way to make it take into account the change in taxes and mortgage interest deduction?

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                        • #13
                          Originally posted by psycho305 View Post
                          I see. I will be moving from a high cost of living city to a much lower smaller town. already used to a big chunk of our income (50% of my salary) going to rent, I had assumed I could afford the typical monthly payment for a physican's mortgage loan.
                          Good axiom to remember: the monthly rent on an apartment/condo is the MAXIMUM you will pay; the monthly rent on a house is the MINIMUM you will pay.

                          Need to do some basic math and calculate your expected costs: closing costs for house first off, then mortgage, interest, property tax, home insurance, HOA, maintenance, and other things I'm sure I'm forgetting.

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