So we’re taking all of that into consideration, having confidence and faith that the income trajectory will occur and the credit quality is there
So one of the very first questions that I have, I think it’s just so relevant and pertinent to this period of time that we’re in. Eileen, can you talk a little bit about from your perspective, how COVID has changed the real estate industry?
Derks: Absolutely, really a unique time for our economy perspective, as everyone knows, but essentially COVID brought the real estate market to a halt. There was no activity. Our home viewing and listing, we just couldn’t in a COVID environment. So, that really brought a pause to folks buying and selling homes. And then as the economy sort of opened up, there was a lot of this pent-up demand. So six plus months of pent-up demand. You add that to, you know, low record, low rates and we really have sort of the perfect storm as it relates to, you know, high demand now. So pent up as well as folks really sort of rethinking where they want to live because they can now work remotely. Coupled with, as I mentioned, low record, low rates, we have a very high demand, there’s low inventory and that certainly translates to a seller’s market.
First of all, I would say it really depends. It’s very individualistic. However, with record low rates, this is really a time to connect with a financial institution, with Laurel Road, can refinance … can deliver an advance from a financial standpoint. Could it reduce your monthly payment? Could it save you money overall in interest? So, really sort of pausing, reflecting on when’s the last time you’ve refinanced or purchase and if you haven’t done so in the last year or two, see if there’s an opportunity to save money, reduce the monthly payment or pay off your loan faster.
Dr. Ajagbe: Great. Thank you so much. I feel like saving money and paying off loans faster, all the things we like to hear as residents. Another really quick question I had was, what do we, as residents, know or for those who are interested, what do we need to know about where to start with physician mortgages?
Derks: Well, physician mortgages first and foremost, really take into consideration the income potential and credit quality that residents and doctors have
And so that really opens up a lot of doors for individuals that are looking to buy their first home or to upgrade their home. Most physician loans allow you to have a higher than normal debt-to-income ratio, which means that you can typically carry more debt, including student loan debt, which we know a lot of our residents are working through right now. You may have a better chance being approved than you would in a traditional mortgage. So contacting a loan officer can help you better understand the benefits of the physician mortgage, which includes up to a hundred percent financing.
So 0% down and in most organizations outside of the doctors or physician mortgage, you would be required to pay PMI, which is called private mortgage insurance and private mortgage insurance is nothing that you get back. It’s really an insurance policy of that. If you don’t repay the loan, there’s some coverage for the financial institution. So with the physician mortgage, there’s no PMI, which could be as much as hundreds of dollars each month or even a thousand dollars a year.
Dr. Ajagbe: All of that, again, sounds extremely beneficial for all of us residents who are in this, you know, considering this right now. All right, Eileen, I think another big question, that’s really at the top of a lot of both residents but also even fourth year medical students who are applying right now and looking at different cities and places to live is, do you have any good advice about renting versus buying instant online payday loans Jamestown?
