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Convert physicians mortgage to conventional?

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  • Convert physicians mortgage to conventional?

    My spouse and I closed on our first home in December 2020. 30 year physicians loan at 3.275% with 5% down. I’m finishing my second year in practice in a surgical sub-specialty. Using the original appraisal, our loan-to-value ratio is 92.62%. Using the estimated value from Zillow, our LTV is 82.14%. Obviously Zillow is just an estimate and may be significantly incorrect. Our other debt is my approximately $163,000 in student loans at 0.32% due in about 3.5 years. What criteria do you use to decide if it’s worth paying for an appraisal? Would then shop around for 15 year fixed rate conventional mortgages as those seem to be around 2% or so.

  • #2
    Shop right now.

    I'm sending final paperwork next week for a refinance (converting physician loan with PMI to conventional without PMI because the value of my home had gone up to the point where I meet equity criteria) and they waived an official house appraisal because demand is so high for appraisers in my area and things are backlogged. Apparently there's some kind of equation that Fannie Mae and Freddie Mac use and the loan officer can plug in advantageous numbers and see if it "goes through", At which point they can ask their boss if it's okay to use the number that worked and wave the appraisal.

    ​​​​​​See if they can do that for you.

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    • #3
      Originally posted by pysibal View Post
      Shop right now.

      I'm sending final paperwork next week for a refinance (converting physician loan with PMI to conventional without PMI because the value of my home had gone up to the point where I meet equity criteria) and they waived an official house appraisal because demand is so high for appraisers in my area and things are backlogged. Apparently there's some kind of equation that Fannie Mae and Freddie Mac use and the loan officer can plug in advantageous numbers and see if it "goes through", At which point they can ask their boss if it's okay to use the number that worked and wave the appraisal.

      ​​​​​​See if they can do that for you.
      Which services did you use to shop around? I’m familiar with Better.com.

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      • #4
        Finance of America, which is the acting element of lending.com in my case, which itself I found through Costco.com.

        I recommend using Costco partnered agencies if you have a membership. It puts a ceiling on closing costs so you don't get screwed. As I have posted elsewhere, another mortgage company tried to give me a worse rate for literally $20,000 of closing costs instead of $2,000. It's insane how much variability there is for an industry that is supposed to be so regulated.

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        • #5
          Shop around.
          We are refinancing a 30 year fixed jumbo at 2.35%.
          Rates are good right now and home values have increased!
          cheers ... -Mark
          "Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau

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