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Refinancing and First-Time Home Buyers

Home Student Loan Management Refinancing and First-Time Home Buyers

  • 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 Home Buying Forum as well.

    #206215 Reply
    Dreamgiver Dreamgiver 
    Participant
    Status: Physician
    Posts: 687
    Joined: 03/09/2017

    1. No. No commingling of non-mortgage debt
    2. You will need to go through a physicians loan, ask them what is best

    I would not buy a house, let alone your dream house, as you start a new job. Many new jobs do not work out and you lose a lot of money trying to sell a home short term. No, you are not the exception to this. Rent first.

    #206219 Reply
    Avatar JBME 
    Participant
    Status: Spouse
    Posts: 377
    Joined: 03/26/2018

    do a quick search on the forum or blog posts of this site. almost everyone will tell you this is a terrible idea. Unless either you or your wife is from the area you are moving to, do not plan to buy a house until you’ve been practicing for at least a year. Get rid of your nearly $400k in student loans first. It’s especially a terrible idea to get a house if your wife doesn’t have a job yet

    #206239 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 389
    Joined: 06/18/2018
    Disability Insurance

    Why are you buying a house?

    You’re broker than broke with sizeable student loan debt at high interest rates. Your wife is currently unemployed.

    Why the hurry to take on more debt? You deserve it?

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

    Nope.

    2. Timing

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

    You should refi your student loans at such a time as you can get a lower rate. The mortgage application should come a year or two down the road once you’re knocked out the majority of those loans and saved enough such that you don’t need a physician loan to buy a house…and know your jobs and location are going to work out.

    Let me guess, you’re planning to take out a mortgage for several times your annual income, too?

    Quite simply, purchasing your ‘dream home’ the second you finish training in a new city while starting a new job while still having large student loan debt is one of the dumbest financial moves you could possibly make.

     

    #206254 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3399
    Joined: 01/08/2016
    We are moving across country in 2 months and are currently in the market for a new home (purchasing “dream home” w/ Physician Mortgage)

    Click to expand…

    nope.

    #206282 Reply
    hatton1 hatton1 
    Participant
    Status: Physician
    Posts: 2866
    Joined: 01/11/2016

    Many threads on this very topic.  First jobs are unstable.  RENT.  Upgrade your lifestyle some.  Focus on the loans and maximizing retirement accounts.  If you buy a house that you cannot afford right out of residency your financial life will be needlessly stressful.

    #206291 Reply
    Liked by portlandia
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 1822
    Joined: 09/18/2018

    “We will be purchasing the home next month.”
    Why are you purchasing?
    “ My wife does not have a job yet for next year. ”
    When will she get one and how much will she make?

    Live like a resident, rent. Refi if you get better rates.
    Max your retirement accounts and the throw everything at you debt. See how it feels to pay one $400k loan off before you take a bite of another. Credit is easy, paying it back is hard. Two years low rent.

    #206296 Reply
    Avatar Panscan 
    Participant
    Status: Resident
    Posts: 670
    Joined: 03/18/2017

    why in the world would you ever buy a house somewhere before your wife has a job

    #206310 Reply
    Liked by portlandia
    portlandia portlandia 
    Participant
    Status: Physician
    Posts: 365
    Joined: 07/07/2017

    Terrible idea. Just rent.

    The Joneses would do exactly what your are proposing. Only problem is they’re broke.

    #206648 Reply
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1089
    Joined: 10/24/2016

    I have preapprovals from 2 mortgage companies

    Click to expand…

    I had 13 quotes.

    My questions are:

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

    Click to expand…

    Nope, mostly because you can’t technically  commingle them. Yours and yours, and while you can add your wife as a co/signer (we did that to get a better rate however), I don’t believe you can roll them together. It’s still your debt.

     

     

     

     

    #206725 Reply

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