Mortgage Refi Dilemma

[SoonerTexan]

Have you checked all the banks?

Honestly, not for physician loans, but I really don't think a physician loan is going to buy us anything at this point in our life.. We have the 20% and we qualify for the best interest rate based on credit. I don't want to establish a checking account with another bank (I'm happy with where we are and really don't feel like redoing all our accounts) and I'm not willing to pay any additional up front fees. Plus, we might want to keep the option open for later if we buy while the loan for this house is still in effect. @alison made a really good point about that.

Yeah. I would keep checking with them. Our Drs loan was lower than the published rate by quite a lot actually.

What bank specifically if you don't mind? Maybe I'll check with them directly, but the response I already got from Compass pretty much told me it wasn't a good route for us.

As for the ARM...I'm on the fence. DH gets home soon and we are going to talk about it. It makes me inherently nervous too, and the 5 year option is definitely out, but I'm still mulling the 7/1. Residency finishes in 4 years. IF we get a fellowship here, that's 5 years. That still gives us two years to be here IF DH gets a job here and IF we want to stay in this house. We probably would for a year or two if the job isn't in Kingdom Come, DFW. I'd be inclined to hold tight and save up some. However..we've already filled the place up. This isn't a forever house. So at that point, THEN we would be at a point when the rate goes up...and it's not by much in the 8th year. After that, if it skyrocketed to the maximum immediately, the payment would go up $200/month--$50 more a month than we are paying now. If DH doesn't have a job 3 years post residency, we are already screwed on many other levels.

Now it definitely wouldn't be advisable if we want to keep it as a rental, so that is something to consider. But I'm not worried about it becoming a financial burden. It would save us $3780 over the next 5 years. So I guess we have to decide if that is worth it.

[Vanquisher]

We've had three physician mortgages. You can have more than one.

We had minimal fees.

Our interest rates are better.

Yes, we had to open a checking account, but I just changed the draft info to our bank after a couple months. No need to change everything. You can have multiple checking accounts. If you can get an amazing rate, no PMI, and can minimize your fees, then go for it. Shop around and know your shit, and they'll get you the lowest they can.

If you can't get better than the current offer, nothing lost. It doesn't take that long to get a few quotes. It does have the potential to save you tons of money. I don't see how you can afford not to investigate, at least. Send an email to the main physician loan peeps at all the companies in Texas and tell them that whoever gives you the best terms will get your business. Lay out what your bank will give you, make sure they are all listed in the "To" field so they can see that they need to give you s good rate.

[SoonerTexan]

We've had three physician mortgages. You can have more than one.

At the same time? Or at different times?

[JDAZ11]

We ended up going with a bank called FifthThird. I think they're local (had never heard of them before). We did gave to open an account with them, but we just auto deposit money for mortgage payments in (they did require an auto deposit, but not directly from our pay checks).

It was an established doctors loan though, so that may have made a difference. DH has to be out of training for one full year and I think rates were pretty remarkably better after that. I totally forgot about that part.....


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[Vanquisher]

Three separate times. We had one during residency (BofA), one on our current home (Compass), and then we refinanced with Suntrust.

[Pollyanna]

We have 5/3 in TN too. Regions, WF, Compass, BofA (I think) all have physician loans (as well as some local banks willing to do in house loans). Although I don't think WF will do a refi for a physician loan now that I think about it.

I hope everything is going well on the refi!!!

[JDAZ11]

We also had a bank here called Huntington that had them.


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[SoonerTexan]

We actually locked in on a 7/1 ARM this morning. Market rates keep going up to the point that refinancing at all was starting not to be worth it, so we went for it. DH and I discussed it last night and decided it made the most sense given the rate difference after we did the math. We calculated the max payment it could ever be and while it isn't ideal for the long term, it isn't getting us into something we cannot afford.

I did email one more physician loan place for kicks last night, just to see what they say, but haven't heard back. I need to just get this done now. I'm starting up on a project at work that is about to suck my life away :/

[ladymoreta]

So glad you got it settled!!

[Vanquisher]

Glad you got it worked out.

[SoonerTexan]

Almost there! We close Monday...right before DH starts 2nd year of residency. Very convenient!!! I'm glad he isn't stuck trying to figure out how to get to the signing.

Our appraisal came back at the highest I thought it possibly could. 31% increase in value from the appraisal when we bought it exactly 3 years okay. Wild. I feel sorry for anyone trying to buy in this market right now.

[HouseofWool]

That's amazing!

[MrsK]

Wow

[OrionGrad]

Awesome!!

I feel sorry for anyone trying to buy in this market right now.

I know. It's scary to think we could not have bought our house (former... we're renting back for 2 more weeks), or any other house in our neighborhood, if we were buying now. Even one of DH's (former) attendings has been priced out of our neighborhood.
In certain areas it's a CRAZY market right now. I just don't see how this is sustainable.

[SoonerTexan]

I know. It's scary to think we could not have bought our house (former... we're renting back for 2 more weeks), or any other house in our neighborhood, if we were buying now. Even one of DH's (former) attendings has been priced out of our neighborhood.
In certain areas it's a CRAZY market right now. I just don't see how this is sustainable.

One of the other radiology residents and his family are coming over for dinner tomorrow--they ended up renting a few streets over. They tried for two months to buy something and got beat out every time. I'm not really sure where or what we would be living in if we had waited to buy.