How to Get the Best Mortgage Rates (Including Doctor Mortgages)
Buying a home is a huge milestone, and securing the best mortgage rate can save you thousands over time. As a doctor, you have unique mortgage options that can make the process a bit easier—but the general rules for scoring a great rate still apply. Let’s break it all down:
The Basics: What Affects Your Mortgage Rate
- Your Credit Score
Your credit score is like your financial resume. A higher score means lower rates. Many doctor mortgage programs understand that young doctors might have student loan debt, so they may be more flexible. However, improving your credit score before applying (paying down credit cards, fixing errors) can still make a big difference.Consider putting a profile together with a trusted mortgage professional as early as 6 months ahead of your optimal time frame. This gives you valuable insight into where you are at and time to fix any errors or improve your situation. Time is a beautiful thing when it comes to improving credit. Don’t be afraid of the inquiry. The information you get is worth it. For more tips, check out our Mortgage Loan Guides. - Your Down Payment
Normally, putting 20% down helps you get better rates and avoid private mortgage insurance (PMI). The good news? Many doctor loans allow little to no down payment while still skipping PMI. This means you can buy a home without waiting years to save up a massive chunk of cash. Even if you have the money saved, you now get to choose what you want to do with your money, putting you in control financially. - Loan Term
Shorter loan terms, like 15 years, often come with lower interest rates than longer ones (30 years). With doctor mortgages, you still have the flexibility to choose a term that works for your budget while enjoying favorable rates. You will often find the best options are 5 or 7-year ARMs. This is a 30-year mortgage that is fixed for the first 5 or 7 years.Considering the current rate environment and the fact that many physicians are not in their first job or mortgage for more than 5 years, this is a great tool to take advantage of. While this might not be for everyone, it should be considered when developing your strategy. - Market Conditions
Mortgage rates fluctuate based on factors like inflation, the federal funds rate, and overall economic trends. Even with a doctor’s mortgage, it’s worth watching the market to lock in your rate when conditions are favorable.A resource that is easy to track is CBOE Interest Rate 10 Year T No (^TNX) Stock Price, News, Quote & History – Yahoo Finance. Here you can get an idea of the trend of mortgage rates. It is not a perfect connection, just simply an easily accessible benchmark for a person to keep an eye on. Keep in mind, lenders will be more reactive to the CBOE going up than they are to the downside.
What Makes Doctor Mortgages Different?
Doctor mortgages (sometimes called physician loans) are designed with you in mind. Here’s why they’re unique:
- No PMI: Even with little to no down payment, you can avoid this extra monthly cost.
- Higher Loan Limits: Many programs allow you to borrow more than traditional loans, which is especially helpful in high-cost housing markets.
- Student Loan Flexibility: Doctor loans often overlook your student debt when calculating your debt-to-income ratio, making it easier to qualify.
- Future Income Potential: Lenders recognize that your income will likely grow over time, which means they’re willing to take a chance on you early in your career.
Our Advice for Doctors
If you’re eligible for a doctor mortgage, it’s worth exploring—especially if you’re just starting out and don’t have a 20% down payment saved. That said, it’s still a good idea to compare offers. Just because a program is designed for physicians doesn’t mean it’s automatically the best deal. Shop around, ask questions, and weigh your options.
If you can manage a 20% down payment, you’ll still benefit from lower rates and reduced monthly payments. But don’t let the lack of a large down payment stop you from buying a home. Doctor mortgages are there to help bridge that gap. SEE “The Ultimate Home Buying Process Guide – Dr. Home Finance” for more assistance
The Bottom Line
Whether you’re using a doctor mortgage or a traditional loan, preparation is key. Improve your credit score, understand your loan options, and stay informed about the market. As a doctor, you’ve got a head start with specialized programs designed just for you—use that to your advantage to secure a mortgage that fits your needs and sets you up for long-term success.
