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Which physician loan would you choose?

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  • #16
    “That good” depends on the timeframe.snd the opportunity cost of the alternative use.
    The interest rate spread is historically really small and 30 years fixed on $800k is a long runway. You tend to compare short term to long term. That is fair. But 3% long term is pretty sweet. The piece missing is the cash flow.
    The payment is much lower, invest at a higher return. Yes, more interest, but you ignored the investment opportunity. You have the tick, but not the tock. There is a long term opportunity here.
    The reason this is attractive is the liquidity risk seems minimal or even favorable.This is a simple use of capital allocation and leverage for the long term

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    • #17
      Originally posted by GastroMastro View Post

      I am not sure what to expect, but I feel like if I can get .5% improvement in the loan with a 7 ARM, on an $800,000 house, over 7 years that's $28,000 in savings. Is that not worth it?
      It depends what you do with the downpayment and what rate you can get after 7 yrs. An ARM is somewhat of a gamble unless you plan to have a slush fund to pay it off in 7 yrs, not in BTC, TSLA, or RE LPs. Just understand the risks you are taking - we've been in this low interest rate cycle a very long time. While it might last that much longer, some of you younger homebuyers have never experienced anything else and that is a little scary to me.

      In general, when it comes to RE, I would do whatever Zaphod says.
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #18
        Originally posted by jfoxcpacfp View Post

        It depends what you do with the downpayment and what rate you can get after 7 yrs. An ARM is somewhat of a gamble unless you plan to have a slush fund to pay it off in 7 yrs, not in BTC, TSLA, or RE LPs. Just understand the risks you are taking - we've been in this low interest rate cycle a very long time. While it might last that much longer, some of you younger homebuyers have never experienced anything else and that is a little scary to me.

        In general, when it comes to RE, I would do whatever Zaphod says.
        fair enough, although in my original post I did not offer Zaphod the choice of any 30-year fixed interest loans and now I am much more inclined to choose that option

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        • #19
          Originally posted by GastroMastro View Post
          I have funds to cover 20% down payment if I wanted, so this is purely a financing question. For all of these options, there are no points.

          1. 10% down, 7/1, 2.375%,

          2. 0% down, 7/1, 2.72%

          3. 5% down, 7/1, 2.6%

          4. 10% down, 5/1, 2.25%

          5. 10% down, 10/1, 2.5%
          Number 2
          what are the best options for 0 % down
          30 yr mortgage
          ?

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          • #20
            Originally posted by nastle View Post

            Number 2
            what are the best options for 0 % down
            30 yr mortgage
            ?
            for 0% down, the best i could find for 30 fixed is 3.6. for 5% down, the best I can find is 3.25%

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            • #21
              Originally posted by GastroMastro View Post

              for 0% down, the best i could find for 30 fixed is 3.6. for 5% down, the best I can find is 3.25%
              Which lenders and what state? Makes a difference.

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              • #22
                Originally posted by GastroMastro View Post

                for 0% down, the best i could find for 30 fixed is 3.6. for 5% down, the best I can find is 3.25%
                Thank you
                can you please share where ? I’m looking for California

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                • #23
                  Originally posted by nastle View Post

                  Thank you
                  can you please share where ? I’m looking for California
                  It's not California

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                  • #24
                    Originally posted by GastroMastro View Post

                    It's not California
                    I just found out you cannot do 0% down in California either it Has to be at least 5%

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