I’ve run the numbers on these “no PMI” doctor loans too, and yeah, it’s wild how the higher interest rate kind of sneaks up on you. People forget that PMI can actually be temporary—once you hit 20% equity, you can usually get rid of it. But a higher rate sticks around unless you refinance (and who knows what rates will be then?). I’d rather pay PMI for a bit and then ditch it than lock in a worse deal long-term. Unless you literally have zero cash for a down payment, it’s worth running the math both ways.
I ran into this exact issue a few years back when I was looking at doctor loans for a duplex. The “no PMI” pitch sounded great until I looked at the total cost over five years. The higher rate ended up costing way more than just dealing with PMI for a bit and then removing it—especially since I had enough for a 10% down payment. Why pay extra interest forever? Unless you really need that super low down payment, the math just doesn’t add up. Anyone actually kept one of these loans long-term and not regretted it?
Honestly, I’ve run the numbers for clients more times than I can count, and those doctor loans rarely make sense long-term unless you’re truly cash-strapped. The higher interest rate eats up any PMI savings fast. If you can swing 10% down, you’re usually better off with a conventional loan and just dropping PMI as soon as you hit 20% equity. The “no PMI” marketing is clever, but it’s not a free lunch.
Yeah, I’ve seen that play out too. Those “no PMI” doctor loans look shiny on paper, but the interest rate hike just isn’t worth it for most folks long-term. Unless you’re really tight on cash upfront, the math rarely adds up in your favor. I get why people bite though—it’s a slick sales pitch.
Yeah, the “no PMI” pitch is catchy, but when you actually run the numbers, that higher rate eats up any savings real quick. I’ve seen folks get lured in by the low down payment, only to regret it a year later. Has anyone actually found a scenario where these loans make sense, or is it just marketing fluff?