What if You Already Have a Physician Mortgage?

What if You Already Have a Physician Mortgage?

  • 7+ Years (and ability to pay the HELOC off very quickly) The Conventional starts to look much better especially if you can get the home equity line of credit knocked out within a year or two. On the other hand, if you really have this much cash flow, maybe you should be looking at a 15 yr mortgage instead.

Closing costs tend to complicate things quickly. To simplify the math, we didn’t include any closing costs. Keep this in mind when you’re comparing various mortgage options. Ask the lenders to provide quotes with as close to zero closing costs as possible at least for starters. It’s much easier to compare mortgages structured similarly from a cost standpoint.

Should You Put Cash Down?

discover personal loans interest rate

What if you have some cash to put down or are considering waiting until you have the cash? In that case, you’ll be comparing the physician mortgage with the conventional 20% down mortgage. To give you a clear comparison, let’s structure the 20% down conventional loan to have the exact same payments as the physician mortgage loan. The only difference is the down payment and the interest rate.

  • $400,000 balance
  • year fixed rate at 3%
  • $2, per month principal and interest

Looking at those numbers, you’re probably thinking you’d take the $0 down option. Maybe you don’t have that much cash available or maybe you think there are smarter ways to use that $100,000. You could use it to pay off loans or start investing. And 4% is still a really good rate. But how does it really compare to the 20% down option?

  • Option 1 $118,998
  • Option 2 $359,348

As you can see on the charts above, putting $100,000 down will end up saving you over $240k in interest. Plus (and this is a huge plus), you’ll get your mortgage paid off almost 12 years sooner.

Additionally, don’t forget that having equity in your home will provide greater security and flexibility, especially if something unexpected happens. Fortsett å lese «What if You Already Have a Physician Mortgage?»