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Purchase Conventional

Conventional loans offer the option to eliminate mortgage insurance after 2 years and after loan reached 80% loan-to-value.

  • Purchased for:

    $626,000

    Click here to read loan terms

    Loan (Principal & Interest): $ 1,988.42

    Homeowner’s Insurance: $ 173.75

    Property Taxes: $ 892.78

    Mortgage Insurance: $ 0.00

    Total Monthly Payment: $ 3,054.95

  • Purchased for:

    $169,900

    Click here to read loan terms

    Loan (Principal & Interest): $ 668.64

    Homeowner’s Insurance: $ 85.00

    Property Taxes: $ 380.34

    Mortgage Insurance: $ 0.00

    Total Monthly Payment: $ 1,133.98

The above detailed loan information belongs to a real loan transaction closed thru Clear Lending. Loan terms are disclosed and available under Loan Terms banner.

Loan Scenario Blog

Down Payment Dilemma: How much down makes most sense?

September 6, 2017

As the purchase of your home gets closer, I am pretty sure your main strategy and action plan is based on how much down payment you are willing & able to give at closing.  First time home buyers first though is always ...MORE.

As the purchase of your home gets closer, I am pretty sure your main strategy and action plan is based on how much down payment you are willing & able to give at closing. 

First time home buyers first though is always the bigger the down payment the lower my monthly payment will be. And while this is true the question is whether the time it takes to save such large down payment while renting compared to its monthly savings makes most sense or not. Before getting into detail with a scenario I invite you to watch video in this section about how down payment affects your overall loan.

In my 20+ year of experience doing loans, however, I have seen how many clients’ strategies lack financial common sense. To illustrate this, consider the following real example of a property listed for sale in Houston, Harris County with 4 bedrooms & 2.5 bathrooms, 2550 sq. ft. built on 2006 which typically would rent at least for $1,600/month:

Sales Price - $180,000
Down payment - 3.5% or $6,300
Credit Score - 680 credit
FHA Interest Rate - 3.875%
Loan Monthly Payment - $831.09
Mortgage Insurance - $123.04/month
Taxes 2016 - $4,565/year or $380.42/month
Insurance estimated - $1,435/year or $119.59/month
Total monthly payment - $1,454.14

Then some clients prefer to wait 2 years to save that 20% or $36,000 renting at $1,600/month or $38,400 for 2 years’ worth of rent. Then after 2 years and once that 20% is saved the following numbers apply:

Sales Price - $197,000 (Based on Houston market trends same house went up $17,000 after 2 years)
Down payment - 20% or $39,400
Credit Score - 680 credit
Conventional Interest Rate – 4.25%
Loan Monthly Payment - $775.30
Mortgage Insurance - $0,00/month
Taxes 2016 - $4,565/year or $380.42/month
Insurance estimated - $1,435/year or $119.59/month
Total monthly payment - $1,275.31

Total savings after waiting 2 years to save $39,400 = $178.83/month. Does it make sense to wait 2 years to save for down payment? Probably not. Feel free to contact me to go over any scenario you were thinking of and would like to run to me for consideration contacting me here.

Home Loan Closing Costs: What You Should Know

September 5, 2017

Purchasing a home and trying to figure out what home loan closing costs to expect? Next I will be discussing closing costs. What exactly is closing cost, you might ask? Closing costs are basically expenses incurred in the proce...MORE.

Purchasing a home and trying to figure out what home loan closing costs to expect? Next I will be discussing closing costs.

What exactly is closing cost, you might ask? Closing costs are basically expenses incurred in the process of completing the home purchase transaction which are over and above the purchase price of the property and which you are planning to buy. These closing costs slightly differ from loan to loan and though initially may not seem like such a big deal considering that you are purchasing a property that’s worth many times over closing costs can actually add up to thousands of dollars! 

Before I go in detail with some of the most typical closing costs seen on most of home loan programs, I invite you to watch this video from the Consumer Financial Protection Bureau in regards Home Loan Closing Costs.

Let’s go over typical home loans closing costs generally seen in all loans:

• Loan origination fee - An origination fee is an upfront fee charged by a lender for processing a new loan application, used as compensation for putting the loan in place generally between 0.5 and 1% on mortgage loans.
• Transaction Fee - The fee the lender and any mortgage broker charges the borrower for making the mortgage loan
• Warehouse Fee - A charge to a borrower when a mortgage banker or other small lender must borrow money on a short-term basis in order to loan money on mortgage loans.
• Document Review Fee – A fee paid to bank’s attorneys prior to loan closing to review legal documents related to the settlement of a property.
• Discount Points Fee - Prepaid interest on the mortgage loan. The more points you pay, the lower the interest rate on the loan and vice versa. Borrowers typically can pay anywhere from zero to two points, depending on how much they want to lower their rates. This kind of point is tax-deductible.
• Appraisal Fee – A fee which covers the cost of having a professional appraiser evaluate a home and estimate the market value of the home. The cost is often around $400 to $600 in most markets, but unique properties and remote homes can cost more to appraise.
• Credit Report Fee - A fee to pay a detailed report of an individual's credit history which lender will need to determine loan applicants' credit worthiness.
• Tax Service Fee - A fee paid to a tax service agency to look for delinquent property taxes and alert the mortgage company to prevent tax liens from existing against their mortgagors' homes. Since tax liens have priority over lender liens, banks want to ensure that they, not the state, become the owner of these properties before closing transaction.
• Flood Certification Fee - A fee that must be paid for an assessment to determine whether the property resides in a flood zone. When a residential home is found to lie within a flood zone, flood insurance is required before closing the sale.
• Document Preparation Fee - A fee that attorneys and/or settlement agents charge for the preparation of the necessary closing documents.
• Contract Processing Fee - A charge for obtaining and coordinating documentation, appraisals, employment and credit history, or any other information necessary for the lender's underwriting department and final approval.
• Lender’s Title Insurance Fee - Title insurance is an insurance policy that covers the loss of ownership interest in a property due to legal defects and is required if the property is under mortgage. The most common type of title insurance is a lender's title insurance, which is paid for by the borrower but protects only the lender.
• Title - Settlement/Escrow Fee - This fee is paid to the settlement agent or escrow holder. Responsibility for payment of this fee can be negotiated between the seller and the buyer.
• Title - Tax Certificate Fee - Fee paid to a title company to determine the status of property taxes on the property. 
• Survey Fee – Fee paid to a surveyor to measure the metes and bounds of the property that you're actually buying. He'll draw a nice map of the property, showing the property line, the improvements on the property, any fences or shrubs, and any easements on record.
• Mortgage Recording Charge Fee - Fees paid to the county for recording the deed of trust and the warranty deed.
• Owner title policy - Insurance policy that covers the loss of ownership interest in a property due to legal defects which is required if the property is under mortgage.
• Underwriting fee – Fee to cover the cost of evaluating your total loan application package, including your credit report, employment history, financial documents and appraisal to complete risk assessment and thus its final approval.
• VA Funding Fee – A fee paid by a buyer or seller to insure the lender against loss through default on a VA loan.
• Upfront Mortgage Insurance Premium – MIP – A price paid by the borrower to insure the lender against loss through default with FHA loans.
• Home inspection - An examination of a real estate property's condition, usually performed in connection with the property's sale. A qualified home inspector can assess the condition of a property's roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some fire and safety issues.

These are some of the most common type of closing costs. For more information on closing costs or further clarification on any matter related to mortgage loans please contact me here.

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Customers Reviews:

  • Beatriz Gonzalez •

    Buenísimo Loan Officer!!!!!!! SUPER RECOMENDADO, gracias por hacer lo imposible posible; gracias por todo tu tiempo, apoyo y consejos. Excelente persona siempre tratando de ayudar y hacer más fácil el proceso. Siempre al pendiente y tratando de encontrar la mejor opción. La verdad nunca pensé que nos prestaran el dinero para comprar la casa y Joan lo consiguió!!!!!! Gracias por todas tus atenciones. Saludos Beatriz Gonzalez.


  • Litanya Bright •

    I am so so excited, I have closed on my home and it was all made possible with the help of Joan and his team (Patricia and Elena) at Clear Lending Home Mortgage. When I first started the process of getting approval for my home, I was nervous and scared of the unknown of being a first time homebuyer and with the Interest Rates steadily increasing would I be able to get a good rate. Well after speaking to Joan for the first time via phone he assured me he would do his best to make it happen and he quickly put my mind at ease. Not only did I close in a little over 30 days, he also managed to get me an Interest Rate of 3.671% . From beginning to the end of the process, the staff at Clear Lending was professional, quick and took great care of making sure that I was informed every step of they way. A special "Thank You" to Joan.. for your hard work, honesty, and dedication in being a dream maker and making my dream of becoming a homeowner true!! I would gladly recommend Clear Lending to anyone looking to purchase a home.

  • Ricardo Cruz •

    I would like to thank Joan for everything he did for us. He is the best in the business and is very knowledgeable. He made the home buying process very enjoyable and he was available at any time to answer any questions we had. He was easy to contact and easy to talk to. I will be referring everyone I know to Joan. Thank you.

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