Mortgage fees can be as volatile as the stock market. Sometimes, your monthly fee can be low, and then suddenly, it will skyrocket to the roof.

 

Contrary to popular belief, there are some ways to predict mortgage changes. If you carefully observe and take note of the various factors that can affect the interest rate of your property, then you will not be caught off guard on your next mortgage due.

1. Location of your house

 

The location of your house directly affects its market value, and therefore, its interest rate.

 

If a public establishment is built nearby such as hospitals, schools, and shopping malls, there’s a high chance that your mortgage will increase. This is because these establishments can increase property demand in your area.

 

2. Credit score

 

Your credit score doesn’t just affect your mortgage application. Sometimes, it can also affect your monthly fees. This is especially true for mortgages under the government or other public organizations.

 

When your credit score fluctuates, the lending organization might increase your monthly mortgage to redeem their trust. And when your credit score increases, they may lower your monthly fee to allow you to buy more property or invest in their other offers.

 

3. Loan term

 

Just like in any loan, lending companies may reduce your monthly fees at a significant rate if your loan term is about to end. So if you’re already halfway through your contract, it’s best to ask your agent if there’s a decrease in your monthly fee.

 

4. Economy

 

Lastly, the economy affects any form of investment– real estate or stocks. So when the economy booms, there’s a high chance that your mortgage will decrease and vice versa. Both private and public lending organizations have to adjust their collection system to make up for their loss and gains due to economic changes.

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