Do physician mortgages have higher closing costs and interest rates?

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Physician mortgages can typically carry a slightly higher interest rate than a conventional loan.  This will vary greatly based on your situation (credit, amount down, specific bank rates and programs). However, physician loans don’t typically carry mortgage insurance, so even though your rate might be slightly higher, the overall cost of the loan is actually almost always less, than compared to a conventional loan with mortgage insurance.

If the lender is using more liberal guidelines to qualify you, there are usually a bit higher rate, about 1/8 to 1/4 percent more for a physician home mortgage loan that has more accommodating underwriting guidelines that are more liberal for unique physician situations.

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