$500,000 home 30-year fixed-rate mortgage 7% APR / 0.5% PMI rate |
5% down payment (Conventional Loan) | 5% down payment (physician loan) | 20% down payment (conventional loan) |
Down payment amount | $25,000 | $25,000 | $100,000 |
Loan amount | $475,000 | $475,000 | $400,000 |
Monthly principal and Interest | $3,160.19* | $3,160.19* | $2,661.21* |
PMI Monthly Payment | $197.92** | $0 | $0 |
Total Monthly Payment (without taxes and homeowner’s insurance) | $3,358.11*** | $3,160.00*** | $2,661.21*** |
* Assumed 30-year fixed rate mortgage with 7% annual percentage rate (APR).
** Assumed 0.5% PMI rate. This cost automatically cancels once 22% of the original loan amount is paid. Requests to cancel can be made once 20% of the original loan amount is paid.
*** Property taxes, homeowner’s insurance, and other monthly costs are not included.
In this scenario, if your down payment is 5%, you will save almost $200 a month with a physician loan.
Mortgages backed by the Federal Housing Administration (FHA) can be a good option for borrowers with low down payment funds and lower credit scores. There is no PMI with an FHA mortgage, but they do often require a mortgage insurance premium (MIP) that extends for the life of the loan and can’t be canceled.
Private mortgage insurance is a requirement for many borrowers, but physician loan borrowers do not pay mortgage insurance. If you are a qualifying physician and are interested in purchasing a home, apply today with Physician Bank or call us at (888) 632-2651. We would be happy to help you get into the home of your dreams without added expenses like private mortgage insurance.
Physician Bank is an Equal Housing Lender, Member FDIC, and a division of Heritage Bank NA. All loans subject to credit approval.
Are you a physician in need of a loan? Physician Bank was made for you!
Start a conversation with us today.
The 100% financing option while we started our first post-residency job, their rapid and efficient response rate to our questions and our numerous changes in schedule that occurred with our builder, and the absence of PMI were all extremely helpful.
Dr. David Ogden, UTThe entire team was easy to work with & made our loan a seamless process for buying a home. Being able to avoid PMI is an awesome benefit.
Dr. Sayer Mansfield, TXThe Physician home loan was exactly what we needed and our lending specialists, Chris, made buying our home easy and enjoyable.
Dr. Moe Reno, NVBeing able to have a 0% down payment was convenient and made it feasible to buy property right out of school. The Physician Bank team was super easy to work with and responsive to our needs either via text, call or email!
Dr. Catibog Roseville, MNKept us informed all throughout the process and was very patient with our questions. We cannot recommend this institution and Julie Velline enough. Thank you!
Dr. Radu Minot, ND140 North Phillips Avenue #101A, Sioux Falls
4.9 61 reviews
Average response time <10 minutes
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