Rising rates: doctor loan now vs 20% loan in 1 year?

Home Mortgages and Home Buying Rising rates: doctor loan now vs 20% loan in 1 year?

  • Avatar Budgetmaestra 
    Status: Attorney
    Posts: 41
    Joined: 04/30/2019
    Splash Refinancing Bonus

    Our US Bank physicians mortgage jumbo loan with 10% down was at a better rate than the non-physician jumbo loan with 20% down. So we did not wait. We were upgrading homes and had very specific requirement so when the right property hit the market we pounced even though we would have preferred to wait one more year. Since we bought a year ago only 2 properties have sold that are similar, and those sold quickly so we are happy with our decision. But fear of rising rates were not a huge concern to us.

    Having less than 20% equity right now is not a major concern to us. This is our long term home (30 years plus) and we are not leaving the area.

    #211842 Reply
    Liked by Zaphod, Craigy
    Craigy Craigy 
    Status: Spouse
    Posts: 2049
    Joined: 09/16/2016

    So just to follow up re this thread and my initial question – the moral of my story seems to be you NEVER know where rates are going to go. When I started this thread 2/2018, I thought rates would go up for sure. In fact, when I was comparing physician loans on 4/20/18, US Bank (with some of the best rates for physician loans when I compared) was quoting 4.375% @ 0 points with 10% down. In 2018, we decided to wait. We are finally under contract on a home now, and rate is locked in as of this past weekend 3.75% @ 0 points with >20% down. The point being that even if you think rates will go up, you never know – and should wait to purchase until you’re ready (which for many may include having 20%+ down payment saved).

    Click to expand…

    Congrats and thanks for the follow-up!!

    Yeah 2018 it was a virtual certainty that rates were only going up.  They were already going up.

    Then, late last year the market had a hiccup, and the fed took its foot off the gas.  Suddenly rates aren’t going up anymore, and might even start coming back down.

    Such is the market.


    #211844 Reply
    Liked by wcireader, Zaphod

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