Should You Pay Off Med School Debt Before Buying a Home?

doctors

Whenever you get a paycheck, it seems like most of that check goes straight to bills — including that large, seemingly insurmountable bill that people outside of the medical profession don’t often have: the large medical school loan.

If you only pay the minimum amount each month, it’ll take you years, maybe even decades, to pay it back. When you have extra money, then, it’s tempting to pay off more toward your debt, but then you might feel like you’ll never accomplish your dream of home ownership. Fortunately, you can learn how to do both.

Get a Low (or Zero) Down Payment

If you use Physician Mortgage Specialists to locate home loans for doctors for you, you can count on getting the lowest possible down payment — in some cases, even zero dollars down is possible. Not having to save up for this large down payment (usually about 20 percent of the cost of a home through typical mortgage channels) means you can put the money you otherwise would have used for a down payment toward your school loans instead.

Get a Low Rate

Locking in a low mortgage rate with our help also frees more of your paycheck to put toward paying down debt. With a low-rate mortgage and low monthly mortgage payments, you can afford to have both an unpaid school loan and a mortgage at the same time — a must for starting a family or breaking away from the often more expensive life of a renter.

Stack Your Debts

Add up all of your bills and minimum loan payments (school, mortgage, and anything else left unpaid, such as credit cards and car loans) and deduct it from your monthly income. Decide how much more you can afford to pay each month while still earmarking some money for savings.

Put all of that excess toward your credit cards, car loan, or school loan. Once that loan is paid off, transfer the entire amount you paid monthly on that loan to the next. Eventually, you’ll be debt-free.

In the medical profession, you have enough on your schedule every day. Let us do the hard work of finding the best possible mortgage for you. Learn more about doctor mortgage loans by giving us a call today at (800) 619-2174.