What Do I Need to Know About My Mortgage?

Homeowners face a lot of big decisions and responsibilities surrounding their property investment and its mortgage. For instance, they must decide if it is a good idea to sell or when to remortgage. If you’re considering selling your house, you will need to be clear on these three facts about your mortgage beforehand.

What All the Terms Mean

Put simply, your mortgage terms reference the amount of time you’ve set to pay off a loan. The most common mortgage term is 30 years, with a fixed interest rate—which means you pay the same amount of interest every year regardless of the current market. Others have a fixed rate for a short amount of time, that then changes to an adjustable interest rate, which can fluctuate according to market rates for better or worse. Homeowners with this latter type of interest rate usually put it into place because they are planning to turn around and sell not too long in the future, and so enjoy the lower rates without having to worry about paying higher rates later.

What’s Happening in the Industry

Another important aspect of your mortgage actually comes outside of its conditions and terms, and is more about the world around you. Trends in the housing market can push interest rates up or down if you have an adjustable one and therefore affect your mortgage. Also, when the economy rises and houses comparable to your own increase in price, you’ll think more about selling your property than times when market decline devalues your property value. There are a number of blogs you can follow that will help you stay up to date, so staying informed isn’t hard and can really help you sell your house at the correct time and for the most profit.

Your Credit Score

Did you know that your mortgage majorly affects your credit score? Obviously taking out a mortgage involves lenders looking at your credit score at the time, but mortgages affect that score moving forward as well. When the loan first goes through, it temporarily hurts your credit score, but then actually improves it over time if you consistently are paying your mortgage on time. If you decide to remortgage your house at some point, this behavior will directly influence your credit score and therefore the quality of the deal you are offered.


Mortgages are more than just a monthly bill. If you are a homeowner, this loan repayment can have complicated effects depending on its terms and interest rates. Knowing all there is to know about your own mortgage will help you in the long run if or when you sell your home!


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