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Physician loan vs PMI vs 20% down

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  • Physician loan vs PMI vs 20% down

    Hello. We are in the process of purchasing a home currently and are going through the process of getting quotes from different banks. We have enough money in our “emergency fund” / cash for down payment for 10% down on the house that our offer was accepted on. We have enough for 20% down if we sell some stocks from our taxable account which we mostly financed from selling our house 1 year ago. (We would have enough for an additional 3-6 months in expenses as well). With interests rates so low (we are quoted 2.2% for 20% down, 30 year) we were thinking it may make sense to put down less than 20%. But after investigating the other options (physician loans vs PMI) with all the extra fees we are now wondering if it makes more sense to just do 20% to minimize the extra fees/ PMI that we don’t actually need. I realize to get the actual answer we should crunch all the numbers but with so many options and banks it is a little overwhelming. My wife currently is an attending making ~50% of the purchase price and I am finishing up in a few months and we are very likely going to be making >100% of the purchase price of the home by 2022. Things are complicated by a baby on the way and my own uncertainty with starting a practice. Any advice would be greatly appreciated!

  • #2
    <20% down.
    what fees are you talking about? get more quotes. theres nothing that makes up the difference of 10-15% of extra cash you dont have to use.

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    • #3
      That sounds like a good interest rate. Which lender are you using?

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      • #4
        How much higher are the rates for the other lower down payment loan options? How long will you stay in the house?

        I would probably put 20% down to get that sweet 2.2% long term rate, and then ramp up the investing on monthly autopilot once the second attending salary kicks in. I would do this, in particular, if I was planning on staying in the house for a long time.

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        • #5
          PMI will wreck your APR. Getting it removed is a pain in the ****************** too. I would go either physician loan, 20% down, an 80/10/10 loan etc before anything with a PMI.

          I would jump on the 20% down 30 year 2.2% rate if you can still get it. Rates have gone up in the past few weeks considerably.

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          • #6
            Sounds like too much uncertainty with kid on the way and you haven’t even started your job yet.
            I would wait to buy a house. What’s the rush?

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            • #7
              can you spell this out a bit more clearly?
              your post is kind of hard to follow.
              what are you actual options here?

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              • #8
                Originally posted by MPMD View Post
                can you spell this out a bit more clearly?
                your post is kind of hard to follow.
                what are you actual options here?
                Agreed. Need some hard numbers

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