The physician loans sound great upfront, but that interest difference adds up over time.
That’s fair, but honestly, the no PMI thing saved me a ton early on. I get the hassle, but at the time, I didn’t have 20% down and just wanted to get in the door. It’s not perfect, but it worked for where I was. If I’d waited for a “regular” loan, I’d probably still be renting.
“the no PMI thing saved me a ton early on. I get the hassle, but at the time, I didn’t have 20% down and just wanted to get in the door.”
- Same boat here—couldn’t scrape together 20% if my life depended on it.
- That “no PMI” perk felt like finding a $20 in your winter coat.
- Yeah, the interest is higher, but I figured I could always refinance later. Spoiler: I did, and it wasn’t that painful.
- Honestly, renting another year would’ve cost me more than the extra interest anyway.
- Not perfect, but it got me a house and a yard for my dog who thinks he’s a goat. Worth it? For me, yeah.
That “no PMI” perk felt like finding a $20 in your winter coat.
Right? The “no PMI” is the real MVP here. Quick breakdown for anyone curious: 1) No 20% down needed, which is a lifesaver when med school ate your savings. 2) Higher interest, but you can usually refi once you’re settled. 3) If you’re paying rent in a big city, odds are it’s more than the extra loan interest anyway. Just keep an eye on fees—some banks sneak in weird charges. For me, it was worth it, but I did have to explain to my parents why my “doctor loan” didn’t make me rich overnight...
I hear you on the “no PMI” being a game changer, but I’ve seen some folks get tripped up by the higher rates and closing costs. Did you compare your total costs over, say, five years versus a conventional loan with PMI? Sometimes the math surprises people, especially if you’re not planning to refi quickly. Curious if anyone here actually ran those numbers before signing, or just went with the convenience factor?
“Sometimes the math surprises people, especially if you’re not planning to refi quickly.”
Yeah, that math definitely surprised me. I got lured in by the “no PMI” siren song, but when I actually plugged the numbers into a spreadsheet, the higher rate made it a wash after about three years. Ended up feeling like I paid for convenience... and maybe a little peace of mind, since my credit wasn’t perfect yet. Wouldn’t say it was a slam dunk, but it kept my stress levels lower than my credit score at the time.