Principal & Interest Only (Initial Phase)
Fully Amortizing
Estimated Monthly Payment:
$0.00
Understanding Physician Loans and This Calculator
Physician loans are a unique type of mortgage designed specifically for medical professionals, including doctors, dentists, veterinarians, and other licensed practitioners. These loans often feature more favorable terms compared to conventional mortgages, such as lower or no down payment requirements, no PMI (Private Mortgage Insurance) even with low down payments, and the ability to exclude certain student loan debt from debt-to-income ratio calculations. This flexibility helps accommodate the typically high earning potential but also significant student loan burdens of physicians in their early careers.
How Physician Loans Work
The primary advantage of physician loans lies in their underwriting, which often acknowledges the borrower's future earning capacity rather than solely their current financial standing. This makes them accessible to residents and fellows who may have high incomes but also substantial student debt and limited credit history or savings.
Key Features of Physician Loans:
Low or No Down Payment: Many physician loans allow borrowers to finance up to 100% of the home price.
No PMI: Unlike conventional loans, physician loans typically waive PMI requirements, saving borrowers money each month.
Student Loan Flexibility: Lenders may offer options like deferring student loan payments or excluding them from DTI calculations.
Higher Loan Limits: Some physician loans offer higher borrowing limits than standard mortgages.
Using the Physician Loan Calculator
This calculator helps you estimate your potential monthly mortgage payment for a physician loan. It's a powerful tool for budgeting and understanding your borrowing capacity.
Input Fields Explained:
Loan Amount: The total amount you wish to borrow for the property.
Interest Rate: The annual interest rate on the loan. Physician loan rates can sometimes be slightly higher than conventional loans, but this calculator allows you to input the specific rate offered.
Loan Term (Years): The total duration of the loan, typically 15, 20, or 30 years.
Loan Type:
Principal & Interest (P&I) Only: Some physician loans offer an initial period where you only pay interest. This is generally not recommended for long-term homeownership as it doesn't build equity. This calculator defaults to showing the P&I payment if this option is selected, with the caveat that the full amortizing payment will eventually be required.
Fully Amortizing: This is the standard mortgage payment, where each payment covers both interest and a portion of the principal, gradually paying down the loan balance.
Property Tax (%): Your estimated annual property tax as a percentage of the home's value.
Homeowner's Insurance ($): Your estimated annual cost for homeowner's insurance.
PMI (%): While physician loans often waive PMI, some may still have it, especially if financing a very high percentage. Enter 0 if your loan does not require PMI.
The Calculation Logic
The calculator uses standard mortgage formulas to determine the estimated monthly payment. It considers the principal, interest rate, and loan term. For the 'Fully Amortizing' loan type, it calculates the principal and interest (P&I) portion, and then adds estimated monthly property taxes, homeowner's insurance, and PMI (if applicable) to provide a Total Housing Payment (often referred to as PITI).
Monthly Principal & Interest (P&I) Calculation:
The formula for the monthly P&I payment is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (Principal & Interest)
P = The principal loan amount
i = Your monthly interest rate (annual rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
The total estimated monthly payment displayed will be P&I + Monthly Property Tax + Monthly Homeowner's Insurance + Monthly PMI.
Important Considerations:
This calculator provides an estimate. Actual loan offers, interest rates, fees, and monthly payments will vary based on the lender, your credit profile, the specific property, and current market conditions. It is crucial to consult with multiple lenders specializing in physician loans to get precise quotes and understand all terms and conditions.
function calculateLoan() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var loanType = document.getElementById("loanType").value;
var propertyTaxRate = 0;
var homeInsurance = 0;
var pmiRate = 0;
if (loanType === "P&I") {
document.getElementById("pitiOptions").style.display = "none";
} else {
document.getElementById("pitiOptions").style.display = "block";
propertyTaxRate = parseFloat(document.getElementById("propertyTax").value);
homeInsurance = parseFloat(document.getElementById("homeInsurance").value);
pmiRate = parseFloat(document.getElementById("pmi").value);
}
var resultValue = document.getElementById("result-value");
if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTerm)) {
resultValue.textContent = "Invalid input. Please enter valid numbers.";
resultValue.style.color = "#dc3545";
return;
}
var monthlyInterestRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyPaymentPI = 0;
if (loanType === "P&I") {
// For P&I only, we calculate the interest portion assuming it's an interest-only payment
// In reality, a true P&I only loan often has a defined period.
// This calculator will show the P&I as the P&I part of the amortizing loan.
// A truly interest-only payment would be simpler: loanAmount * monthlyInterestRate
// For simplicity and to show the base P&I, we use the P&I formula part.
// If the intent is strictly "interest only", the formula is loanAmount * monthlyInterestRate.
// However, physician loans often structure the PI calculation to show the eventual P&I payment.
// Let's calculate the actual P&I part that would be paid in an amortizing loan.
if (monthlyInterestRate > 0) {
monthlyPaymentPI = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
monthlyPaymentPI = loanAmount / numberOfPayments; // If interest is 0%
}
// For P&I Only, we primarily show this amount and note it doesn't include PITI
resultValue.textContent = "$" + monthlyPaymentPI.toFixed(2);
resultValue.style.color = "#28a745"; // Success Green
if (loanAmount > 0 && loanTerm > 0) {
// Add a note that this is P&I only, actual total might be higher with PITI
// This is a simplification, as P&I only payments are structured differently.
// For this calc, showing the P&I component is useful.
}
} else { // Fully Amortizing
if (monthlyInterestRate > 0) {
monthlyPaymentPI = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
monthlyPaymentPI = loanAmount / numberOfPayments; // If interest is 0%
}
var monthlyPropertyTax = 0;
if (!isNaN(propertyTaxRate) && propertyTaxRate > 0) {
monthlyPropertyTax = (propertyTaxRate / 100) * loanAmount / 12;
}
var monthlyHomeInsurance = 0;
if (!isNaN(homeInsurance) && homeInsurance > 0) {
monthlyHomeInsurance = homeInsurance / 12;
}
var monthlyPMI = 0;
if (!isNaN(pmiRate) && pmiRate > 0) {
monthlyPMI = (pmiRate / 100) * loanAmount / 12;
}
var totalMonthlyPayment = monthlyPaymentPI + monthlyPropertyTax + monthlyHomeInsurance + monthlyPMI;
resultValue.textContent = "$" + totalMonthlyPayment.toFixed(2);
resultValue.style.color = "#28a745"; // Success Green
}
}
// Initial setup for loan type visibility
document.addEventListener('DOMContentLoaded', function() {
var loanTypeSelect = document.getElementById('loanType');
var pitiOptionsDiv = document.getElementById('pitiOptions');
if (loanTypeSelect.value === "P&I") {
pitiOptionsDiv.style.display = "none";
} else {
pitiOptionsDiv.style.display = "block";
}
loanTypeSelect.addEventListener('change', function() {
if (this.value === "P&I") {
pitiOptionsDiv.style.display = "none";
} else {
pitiOptionsDiv.style.display = "block";
}
});
});