Paul Beatty HECM Loan Originator

02/06/2024

11/03/2023

Posting this matrix that can be used to calculate the allowable Seller's concessions towards Buyer's closing costs and prepaid items. These can be used for 2/1 buydowns, standard closing costs, etc. as well as to pay the Buyer's agent's fees when included as a closing cost and if they don't have the available funds to pay this directly.

10/09/2023

Kind of big news that might benefit some of your Buyers is that FNMA will be offering a 95% loan option for primary residence Buyers who purchase a 2-4 family property. This is a significant reduction from the current down payment requirements of 15% and might provide a better option than the FHA loan as it eliminates the "self sufficiency" test that made this unattainable for many FHA loans. FHA requires that that 75% of the gross rental income for all of the units (assuming that the owner moves out of their unit) covers all of the PITI and this is very difficult to acheive. This new program which rolls out next month would eliminate that requirement.

06/28/2023

Median sales price v. Appreciating/Depreciating home values and why this may not be a very reliable number to determine that. Let's say that last year at this time there were 5 homes sold. House #1 for $200,000, #2 for $300,000, #3 for $400,000, #5 for $500,000 and #6 for $600,000. The median sales price (half above and half below) would be $400,000. This year there were 3 sales and they consist solely from the above list. #1 sells for $220,000, #2 sells for $330,000 and #6 sells for $660,000. We can resonable deduct that there was home value appreciation of 10%. However, the median sales price is now $330,000 (a 17.5% decline). When we see nominal changes in the index of median sales prices (up or down a few percent) this can be very misleading as the actual homes that sell during a given period of time can greatly influence the median sales price, even though in the real world house prices could have risen (or declined). Likewise, if more of the homes that sell are in either the higher or lower of the range (and Cape Cod and the South Shore have a very broad range of prices) this will further muddle the median sales price and might not be a good indication of where values are or are heading. So, when your buyer suggests that they read something indicating home prices are dropping, realize where the info is coming from and please educate them as to how the numbers are derived.

05/24/2023

In today's video, Dave Landry of the Gervais Group is joined by Paul Beatty, Managing Partner at Homestead Mortgage to bring you a COMPREHENSIVE market upda...

04/28/2023

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How does your net worth stack up? 💰💵 | 13 comments on LinkedIn

04/21/2023

Just want to correct some wild misinformation that's been both in the news media and trending through social media. The headlines would make you believe that within the last week the government made some changes to interest rates that will cause higher FICO borrowers to pay higher interest rates than those with lower credit scores. THIS IS EMPHATICALLY UNTRUE, A HIGHER FICO SCORE WILL GET YOU A BETTER INTEREST RATE. What did take place (and this isn't new, it was announced several months ago) is that those with lower FICO scores will have fewer "hits" to their rate and end up with a better interest rate than they would have in the past. Those with higher FICO scores (ablve 680 and less than 780) will have some additional "hits" to their rates and it will cost slightly more than it would have in the past, although still less than those with lower FICO scores.

04/18/2023

A reverse mortgage is a loan that allows homeowners who are 62 or older borrow against a portion of the equity in their home. Curious if a reverse mortgage i...

03/17/2023

REALTORS: We all get our Buyers pre-approved for a mortgage before they shop, but I believe there is a larger market of people who would like to move to a larger home as they've outgrown the home they purchased a coupe of years ago. The challenge is they believe they'll be trading in their low 3% or so mortgage loan for a rate in the 7's and they just can't come to grips with that. Have your Sellers talk with a knowledgeable professional as part of your listing presentation. Many we've spoken to realize there are multiple options with how to use their proceeds from the increased equity they've realized to get them a MUCH better interest rate and payment than they thought with the new purchase. This might just be the catalyst they need to make the move into the house that they want. In this market it's necessary to shop for the best product and terms to facilitate that move.

03/16/2023

Welcome to my page where I will be sharing information on all aspects of mortgages and real estate with an emphasis on the HECM and reverse mortgages.