December 29, 2016 – Anthony Powell, Vice President of Operations, AAFMAA Mortgage Services, explains why a 30-year fixed mortgage is still the best option for 2017.
The Mortgage Bankers Association (MBA) (Mortgage Bankers Association) recently released mortgage application statistics, and military families may be surprised to find out that Adjustable Rate Mortgages make up only six percent of the market. Military families should invest the time to explore the variety of mortgage options — Fannie, Freddie, USDA, VA, FHA — but should stick to a good, old-fashioned 30-year fixed rate mortgage in most situations.
“With housing prices increasing and interest rates on home equity lines of credit and adjustable rate mortgages rising, military families should secure a 30-year fixed rate mortgage within the first few months of 2017,” according to Anthony Powell, Vice President of Operations of AAFMAA Mortgage Services. (See November 12, 2015 article here.)
Military families should lock in current low market rates for the long term. Many mortgage providers only sell one kind of mortgage loan, and with 2017 closings starting to come into focus, the 30-year fixed rate loan still remains the right option for 94% of families. AAFMAA Mortgage Services runs scenarios on the mortgage options available to military families and provides expert advice on which option is best through a number of state-licensed loan officers ready to serve the military.
AAFMAA Mortgage Services. 844-4-AAFMAA (844-394-4526). Equal Housing Opportunity Lender. http://www.aafmaa.com/mortgage. Physical location 639 Executive Place, Suite 203, Fayetteville North Carolina 28305. NMLS license number 1423968. Anthony Powell, NMLS ID 78385.