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First-Time Home Buyers and Student Loan Refinancing

Home Mortgages and Home Buying First-Time Home Buyers and Student Loan Refinancing

  • Avatar Plastoid17 
    Participant
    Status: Resident, Physician
    Posts: 3
    Joined: 12/28/2018

    My wife is a practicing part-time rheumatologist and I am completing my last year of plastic surgery residency in June and we will be moving halfway across the county when I graduate.  I have a signed contract with a private practice group with a base salary of $270K + production  + call pay.  My wife does not have a job yet for next year.  I have about $360K in SLs (refi’d w/ Laurel road at 5.26%) and my wife has around $30K in SLs (federal loans at 6.8%).  We are moving across country in 2 months and are currently in the market for a new home (purchasing “dream home” w/ Physician Mortgage).  I have preapprovals from 2 mortgage companies and plan to pit them against each other when the time comes to buy in order to get the best terms.  We will be purchasing the home next month.

    My questions are:

    1.  Does it make sense for my wife and I to refinance our loans together?

    2. Timing

    a. When should we refinance in regards to timing with the mortgage application (multiple hard credit pulls, debt-to-income ratio, etc.)?

    b. Would it be best to wait until after the mortgage terms have been determined and the house is closed on, or should we refinance before this?

     

    Thanks is advance.  I have posted this is the Student Loan Forum as well.

    #206216 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3988
    Joined: 01/08/2016

    same answer as other thread.

    #206283 Reply
    Liked by Tim
    Avatar TheDangerZone 
    Participant
    Status: Physician
    Posts: 8
    Joined: 12/23/2018

    Are you sure you need to purchase a home at this time? I know it is REALLY tempting but it may be wise to rent a home for a year or two to make sure both of your new practices are what you think they will be. You never know sometimes until you’re in the trenches. If you have a restrictive covenant, you just might find yourself having to move or find work further away. Not much harm in renting a nice place for 12 months to make sure everything is gravy before committing to your “dream home.” You would also have some extra time to explore different neighborhoods, and get a real sense for where you want to be. To a much lesser extent, the possibility of an upcoming recession may give you a more favorable market when the time comes as well.

    #210977 Reply
    Avatar EM->CCM MD 
    Participant
    Status: Physician
    Posts: 62
    Joined: 07/23/2017

    Rent. I’m finishing up my first year as an attending and I’m very glad we did. It’s definitely changing the house we will buy (and we’ve even lived in this city before), it’s also changing our budget as we now have a better lifestyle my attending budget affords us.

    If I were you (and I suspect most people on the board would agree with me), rent a very nice place – somewhere that feels a lot nicer than where you lived as a resident. Have some niceties so you don’t feel suffocated, but live on a budget and dump as much debt as you can and build up an emergency fund. After a couple years, once you know that you like you’re job, youve maxed you’re retirement for a few years, you know the market, you have a stronger down payment and lower debt levels, go out and get a nice house.

    #210983 Reply

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