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Perils of Physician Mortgage Loans BY STEVE BARRETT HOME LOANS GE ARED E XPLiCiTLY TO PHYSiCiANS — PARTiCUL ARLY RECENT MEDiCAL SCHOOL GR ADUATES — HAVE SOME AT TR ACTiVE FE ATURES. FOR E X AMPLE, THE Y typically require only an employment contract rather than actual pay stubs. Some can be approved even before a physician begins work at a new job, and student loan debt isn't included in debt ca lculations. Down pay ments of on ly 5 –10 percent — or even 100 percent financing — may be available, and private mortgage insurance is not required. However, physician mortgage loans have a number of disadvantages as well, cautions Gold Medal Waters, a fee-only f ina ncia l pla nner ba sed in Bou lder, Colorado, that ser ves physicians and high-net-worth clients. Among the potential pitfalls the com- pany notes on its website: + Interest rates often are higher than those of conventional loans. + If the loan requires no money down, interest over the life of the loan will be signifi cantly greater. + Residents may not hit the five-year break-even point on a home purchase before relocating after residency. Most residents fare better by renting rather than purchasing a home, according to Gold Medal Waters. This lets them save up the 20 percent down payment that will allow them to get a conventional mortgage with a better interest rate. They can also avoid maintenance costs that come with home ownership. n Amegy Bank ® Commercial Cards can help you streamline business purchasing by combining multiple types of expenses onto a single card. The Amegy Bank Consortium Commercial Card goes even further, connecting you with like-minded businesses to aggregate payment volume and amplify your ability to earn revenue share on every payment. 1 And that's just the beginning. An Amegy Consortium Commercial Card 2 gives you: • Robust spend management—set credit limits and usage restrictions online • Automatic transactions to eliminate invoices and paperwork • Online reporting and customized tools to improve cash fl ow • Reduced administration needs by routing payments through a single source • Flexible accounting options that match to your existing processes And as part of a consortium with other healthcare businesses, you can combine spend volume to increase revenue share even faster. Here, you grow. Give your business the spending power and control that leads to growth. Commercial Cards can help you streamline business purchasing by combining multiple further, connecting you with like-minded businesses to aggregate payment volume and amplify your and control that leads to growth. See what the Amegy Bank Consortium Commercial Card can do for your business. Rob Lindley, SVP (210) 343-4526 Karen Leckie, SVP (210) 343-4558 Denise Smith, VP (210) 343-4502 A division of ZB, N.A. Member FDIC. © 2018 ZB, N.A. 1 Rate of return is determined by level of spend. Revenue share is paid annually. 2 Credit Card is subject to credit approval. Terms, conditions and restrictions apply. See banker for details. M D N E W S . C O M /// M D N E W S S A N A N T O N i O ■ 2 018 1 3