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  • Doctor Loan for Resident Mortgages

    "The match" is only a little over a month away, and my wife and I contemplating the renting vs buying question.  Does anyone have any (even anecdotal) ideas of what kind of rates we could expect a 120-150k mortgage? Would the rates be better if both of us are working? Our salary would be expected to be 110-130k combined.

  • #2




    “The match” is only a little over a month away, and my wife and I contemplating the renting vs buying question.  Does anyone have any (even anecdotal) ideas of what kind of rates we could expect a 120-150k mortgage? Would the rates be better if both of us are working? Our salary would be expected to be 110-130k combined.
    Click to expand...


    Mortgage Rates have been going up, but you are probably looking at 4.0% - 4.5% based on today's pricing.  Your credit score will be an important factor in determining if you qualify for the best interest rates.  That said, I think most residents are better off renting unless you are going to be surgeons and have a couple of years of research mixed in.

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    • #3
      Have you read all the try not to buy a house posts on this site?

      As well as the random few where it worked out?

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      • #4




        Have you read all the try not to buy a house posts on this site?

        As well as the random few where it worked out?
        Click to expand...


        I have....and I am leaning towards renting. Just doing due diligence.  The only way I would buy a house, is to buy one for only ~1x annual income...It's just tough because I'm estimating that in my top cities, it'll cost 1200-1400 for what we would want to rent. But to purchase could be 800-900/month. That's a lot of cash flow for paying off student loans.  Goal is to live on wife's salary and put all of mine towards loans.

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        • #5
          The other factor to consider is long-term gain or loss on an eventual sale. Unless you plan to stay in this specific house for the next 5 years, it is more likely you will lose money and I really recommend against renting. And, as a med student, you know what that answer is. Of course, you could always convert to a rental with all of the related headaches, I suppose. It's tough to put off buying a house, but I bet you'll look back at graduation and be glad you did.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Your rate is going to be based on your credit score (hopefully in the mid-high 700s) and debt-to-income ratio.  Also, it depends on whether or not you put up 20%.

            I am one of the rare people on here that thinks buying a house is not a horrible idea.  However IMO if you can find something nice for $1,200 to $1,400 to rent, that's pretty cheap.

            About 5 years ago my wife and I bought a house.  Our payment was about $1,500/mo with escrow included.  At the time, to rent something comparable, if you could even find it, would have been about $3,000 a month.  Over the years we've definitely made some money on the house and saved vs renting, but it's not quite the spread between the payments.  Plus, we've only paid down maybe $30k of principal over that time period, which works out to like $6,000/year.  BFD.

            Again you're going to have maintenance and other costs on top of that payment.  Some say 2% of home value per year.  Some years you'll get off cheap, others you'll get hit with a $8,000 bill.  Plus temptation to make various expensive improvements, etc., which add up.

             

             

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            • #7
              Lots of $$ and %s in this thread. I wonder what kind of cush residencies some of you guys did . Owning houses are headaches. Maybe you could save $10,000 a year for 6 years compared to renting. Still wouldn't' be worth it considering all the things that could go wrong at all the possible wrong times during residency.

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              • #8




                Lots of $$ and %s in this thread. I wonder what kind of cush residencies some of you guys did . Owning houses are headaches. Maybe you could save $10,000 a year for 6 years compared to renting. Still wouldn’t’ be worth it considering all the things that could go wrong at all the possible wrong times during residency.
                Click to expand...


                As an example, over the last few years, off the top of my head, big items we've had to do, each roughly ~$500 to several thousands each:  water heater, a/c condenser and coil, waste line tunnel #1, some sort of a/c panel, waste line tunnel #2, plumbing leaks, etc.

                Does not include various items I've fixed myself and other little odds & ends.

                Plus various improvements, fencing, soil & sod, lighting, etc.

                That's just five years.

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                • #9
                  It's probably better to see where you match first. Then rent for awhile to get a feel for what neighborhoods you like. After you're settled in and a bit comfortable with the area, then you may want to start looking to buy. Good luck!

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                  • #10
                    We were young and dumb and bought a house in med school and it worked out fine. But rented ( and moved 3 times) in residency. And I'd still encourage you to rent. Residency is rough and the time you need to take care of the house is time you could be sleeping :-) It probably won't ruin you financially if you buy, but from a practical point of view, I'd rent. So much less hassle with renting.

                    Good luck in the match! So exciting!

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                    • #11
                      I would talk to a real estate agent and see what the resale market is in the area you end up living in. I happen to live in a place that has been a sellers market the past 3-4 years with little signs of stopping. Most of the people I know have made 40K+ after living in a place for 5 or so years.

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