AAFMAA Mortgage Services

Celebrating Military Homeowners (and Buyers!) This Month

2024-06-27

Every June, as we celebrate National Homeownership Month, we thank AAFMAA Members for letting us serve them and we remind you that if you’re thinking about buying, if you may need to refinance, or if you want to withdraw cash from your home equity, AAFMAA Mortgage Services LLC (AMS) Military Mortgage Advisors, also known as Mortgage Loan Originators, are standing by to help.

We fully recognize that 2024 is proving to be a tough year for many individuals to buy or sell a home (and, just to let you in on a little secret, it’s been a tough year for lenders, too). Interest rates have hovered near the 7% mark for months, giving pause to many would-be buyers and sellers who may have mortgages now with rates in the 2.5% to 3.5% zone and are reluctant to sell and buy at a higher rate.

Plus, the price of homes just keeps going up. According to the National Association of Realtors, the median sale price for an existing home in the U.S. in March was $393,500, the highest March median price on record.

Getting Expert Advice

AMS home loan experts work with homebuyers (and often sellers) daily, fielding their concerns on rising prices and interest rates and ensuring homeownership is a financially beneficial move for them. Home prices, mortgage rates, inventory levels and real estate agent commission structures affect housing affordability. (As a rule of thumb, you should spend no more than 30% of your income on housing costs — as a renter or homeowner — otherwise you are considered to be “cost-burdened.”)

We’re also experts at what it means to serve in the military and go through frequent moves. Many AMS team members are Veterans or military spouses. When it comes to helping you plan your next move — whether it’s to buy your first home or downsize to a home for retirement — we’re here for you.

10 Tips for Buyers and Sellers in 2024

Get our free downloadable Homebuying Guide featuring guidance for buyers, from the moment you decide you’d like to own a home till you sign on the dotted line and beyond. (It’s also a great cheat sheet for sellers who will be buying after many years of homeownership.)

Some highlights:

Should I rent or buy? There are pros and cons to both renting and buying. This decision is a personal one based on your career level and how long you think you’ll live in the area. Check out our rent vs. buy calculator if you want to run some numbers.
Budgeting for homeownership. If you plan to save for a down payment and other related homebuying costs, a budget can help you determine how long it will take to reach your savings goal.
How much does it cost to truly maintain a home? Spending doesn’t stop once you’ve unloaded the moving van. If a system (such as the HVAC) breaks down or if you need to replace the roof, for example, you can expect to spend 1% of your home’s value on annual maintenance.
Talking to lenders. Not all lenders are created equal. Find the one you trust and are comfortable working with. (Of course we hope that’s us!)
Types of mortgages. While we’re partial to the VA Home Loan, there are a range of financing options available through AMS such as FHA, conventional mortgages, and even construction loans. We’re here to help you understand those options and choose the right loan for your needs.
Hiring a real estate agent. You can benefit from having the right agent by your side, one who knows your local housing market and has experience with military buyers and sellers.
How to make your offer stand out. Given the lingering low housing inventory conditions in many U.S. markets, you’ll want to work with your agent to make your offer attractive enough to rise to the top of the seller’s stack.
Comparing mortgage quotes. Each lender you apply with must send you a Loan Estimate within a certain number of days. You aren’t obligated to use the lender who may have pre-approved you, and we suggest comparing a few to ensure you secure the best financing for your needs.
Underwriting and closing. Believe it or not, something could still go wrong. Here's what you need to know to keep the process moving forward.

Download the complete guide here.

Welcome to Your New Home

Moving into a new home is certainly an exciting time… but don’t forget you’re now responsible for your mortgage payments. When you receive your mortgage statement, or set up an online account, your servicer’s name and contact information should be in the top left-hand corner. This company will usually set up an escrow account on your behalf to ensure your principal, interest, taxes, and insurance (collectively called PITI) and other payments (such as HOA fees) are paid, but you’ll want to make sure everything is in order and accounted for when you make your payments.

Once you’ve moved in, you can look forward to enjoying your home for many years to come! It’s not only a place you live but it’s helping you create generational wealth through equity. As your needs change, please refer back to the AMS Homebuying Guide for information and access to our many financial calculators. And, as always, contact us if you need assistance.

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