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Physician assistant mortgages


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On 1/19/2019 at 3:33 PM, Enb5499 said:

Does anyone have any experience with a physician assistant mortgage to purchase a home? A presentation prior to graduation by a financial advisor told us these exist, however he only had experience doing this for physician mortgages. 

Is it something worth considering?

To actually answer your question: I just bought a home and almost went with a "professional mortgage."  This is a loan reserved for specific industries where the individual's income is significantly higher than average, and also usually considered to be more stable.  The loan I almost went with was 0% down WITHOUT PMI and I was initially told the interest rate was essentially the same as current averages...I was lied to.  The interest rate was over 6%.  Totally not worth it.  While not ideal, we ended up with PMI, but we were able to work with a local lender and our PMI is $3.73 per month.

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1 hour ago, sas5814 said:

 

I'm saving up for a kilo of cocaine I'm going to step on 5 times and re-sell. I'm playing catch up on my retirement money.

If you have any trouble moving it, I can probably have you a buyer in South Oak Cliff within a couple of hours.  

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I have been using an Ally Bank savings account for several years.  They have a 2.20% interest rate.  When I started with them it was lower, but has gradually increased.  Don't know when it increased to 2.20%.  I have seen some banks advertising higher interest rates but it requires certain requirements be met (like direct deposit, automatic bill pay, etc.) and I have not looked into that yet.  As for Ally, it is very simple and I have had ZERO issues with them.

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On 1/21/2019 at 8:44 PM, mgriffiths said:

To actually answer your question: I just bought a home and almost went with a "professional mortgage."  This is a loan reserved for specific industries where the individual's income is significantly higher than average, and also usually considered to be more stable.  The loan I almost went with was 0% down WITHOUT PMI and I was initially told the interest rate was essentially the same as current averages...I was lied to.  The interest rate was over 6%.  Totally not worth it.  While not ideal, we ended up with PMI, but we were able to work with a local lender and our PMI is $3.73 per month.

Thank you for actually answering the OP's question!!!

 

Was wondering if anyone was...

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On 1/21/2019 at 8:44 PM, mgriffiths said:

To actually answer your question: I just bought a home and almost went with a "professional mortgage."  This is a loan reserved for specific industries where the individual's income is significantly higher than average, and also usually considered to be more stable.  The loan I almost went with was 0% down WITHOUT PMI and I was initially told the interest rate was essentially the same as current averages...I was lied to.  The interest rate was over 6%.  Totally not worth it.  While not ideal, we ended up with PMI, but we were able to work with a local lender and our PMI is $3.73 per month.

Lol....Thank you for actually answering my original question. Highly appreciated

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On 1/19/2019 at 6:07 PM, Boatswain2PA said:

Why isn't it? 

$200K house, paid in cash, will cost you about $210K after fees, etc.

$200K house, with $40K down, 30 year mortgage at 3.5% will cost you $308,650.

I'll keep the extra $98,650 instead of giving it to a bank.

Want to know why the biggest buildings in town usually have bank names on them?  Cause of that $98,650 you give them for a $200K home.

I agree. Dave Ramsey would as well. Save and pay cash for everything, get plastic surgery (cut up all credit cards) and starting saving in Roth 401K and IRAs. 

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On 1/21/2019 at 1:26 PM, ventana said:

Boatswain2PA  

 

You are so far out of the norm and accepted financial advice I don't even know where to start....

 

Maybe you should take some Business Courses or Financial Management courses to gain some expertise in the field of finance as you are lacking a few of the basic tenants.  Although this is a helpful PA site I am not willing able or motivated to do into a lecture on financial planing and goals....

Or maybe you have a old school way of thinking that doesn't work and have not looked into other ways in financial management in a while...maybe check out Dave Rasmey?

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I think the best answer lies in the middle:  Definitely spend less than you make.  Definitely max out the tax deductible retirement contributions you can make and max out employer matches on 401k's.  Definitely avoid consumer debt: credit card interest, car loans, etc.  However, I have a mortgage at 3.785%.  That interest is tax deductible.  Historically, the stock market has averaged a 7% rate of return over the long term.  So, even though I will pay more for my house, my retirement savings will be larger by a bigger margin if I put my extra $ into investments vs paying off my mortgage early.

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Ohio - traditional mortgages like yours arent "wrong", neither are "physician mortgages" or other high-cost products.

I just like highlighting the point that people forget to factor in the RISK of having such debt.

As someone who has played both sides of the debt-fence, I can tell you it's awesome to own your home, own your cars, and have no debt.  Then you truly can appreciate how much money you make.

 

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man you guys are so far off topic....

So I am actually in the market for buying a house right now, and I have talked to 3 different places that offer these professional loans. Here is what Ive got so far:

Place one - only does ARMs with interests starting at 4.5%, no down, no PMI, no early payment fee

Place two - did a pre-approval for a 30 yr fixed with rate of 4.37% but requires down of 3%, no PMI, no early fee

Place three - waiting on pre-approval, but told they are very competite but ill post more concrete answers when I have them.

 

As a background: my wife and I have 760 and 800s credit scores, low credit card use ratio, no debt other than rent.

On 1/21/2019 at 8:44 PM, mgriffiths said:

To actually answer your question: I just bought a home and almost went with a "professional mortgage."  This is a loan reserved for specific industries where the individual's income is significantly higher than average, and also usually considered to be more stable.  The loan I almost went with was 0% down WITHOUT PMI and I was initially told the interest rate was essentially the same as current averages...I was lied to.  The interest rate was over 6%.  Totally not worth it.  While not ideal, we ended up with PMI, but we were able to work with a local lender and our PMI is $3.73 per month.

Was the interest of 6% told to you from the get go or????

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6 minutes ago, Boatswain2PA said:

I would suggest that those rates are .5%-1% above what you could get putting 20% down.  That's much better than other professional loans I have heard about.  I hope those are locked in for you.

Yeah that what I've gathered from my research. Would be best if we had 20% for down but that's out of our reach atm

They are pre-approval rates so not final say, that's why I asked Griffin if he went through a click-n-bait type of scenario or if he was told 6% from the get go

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3 hours ago, davidccs said:

Was the interest of 6% told to you from the get go or????

I was not quoted a rate from the beginning, I was just told that it was competitive with a normal 30 year mortgage.  Then when it came time to actually apply for the loan the 6% was quoted to me, I literally hung the phone up on the guy after telling him he lied to me.

Rates have dropped recently, but I ended up around 4.5% but had to put 5% down because I had owned a home in the last 3 years...a long story.  Again, we ended up with PMI but it is negligible.  The whole goal is to pay off my student loans as rapidly as possible.  I could leverage my debt by refinancing my student loans, but I only subscribe to that theory to a point.  A home generally is an appreciable asset (of course there have been exceptions...especially 2008), while student loan debt is not (of course ignoring the higher income I make as a PA compared to being a high school teacher).  I can't sell my student loans as an asset for someone else to take over the debt like I can a home.

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On 1/29/2019 at 3:49 PM, camoman1234 said:

I agree. Dave Ramsey would as well. Save and pay cash for everything, get plastic surgery (cut up all credit cards) and starting saving in Roth 401K and IRAs. 

Cut up all credit cards?  That's good advice only for people that are terrible with finances.

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On 1/31/2019 at 8:21 PM, cinntsp said:

Cut up all credit cards?  That's good advice only for people that are terrible with finances.

That would be everyone including myself. On average one will spend 12-18% more with plastic than cash. What do you think it does to one's neurotransmitters when you pay for supper at $45 or you swipe and pay a month later. There is proof in this theory and it's growing. 

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Just wanted to chime in here.

So I bought a house right out of PA school and only put five percent down (I know, I know). My mortgage is 30 year at 3.6 percent (And yes, I have been paying PMI for a few years but given that the house has appreciated in value I might be able to stop that soon).

As soon as I started making dough I had anxiety about paying off that mortgage ASAP! Making extra payments! However I spoke to a financial advisor about this and his response was WHY? He said my rate is so low I am far better off investing. Even with the historical average of 6 percent return a year I come out ahead. I am 29 - what do I have to lose with investing at this point (well, a lot, but I have my whole life to make up for it in the event crap hits the fan). I currently have 90K invested in mostly index funds and plan to invest more. I have an individual stock portfolio which has gained 14 percent in value over two years. I max out my retirement plans. I was able to pay off my PA school debt within a year because my cash wasn’t all directed to a down payment on my house. Now I’ve got no debt.

Of course in the 30 years of my mortgage I will have paid a crap ton of interest. But if I invest aggressively I am hoping I will come out ahead this way. 

OR maybe I am just delusional. I do have a lot to learn. 

 

 

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