Your Mortgage Statement Explained

Key Points

• Your mortgage statement is a document that contains important details about your loan.

• You will receive a statement from your lender or servicer for each billing cycle, and it is a good idea to review each statement for accuracy.

• If you can access your statements online, you may get rid of the paper version, but there are some documents you should never throw away.

Your mortgage statement contains essential details about your loan balance and payments. You should receive a statement from your mortgage servicer each month. Here, we will tell you what a mortgage statement looks like so you know exactly what to expect each month.

What is a mortgage statement?

A mortgage statement contains the most up-to-date details of your loan, including your monthly payments. Your lender or mortgage servicer is required by law to send you a statement each billing cycle.

Mortgage statements are usually issued once a month by mail. You can also find them on your lender or servicer's website. You may receive them electronically, but it may be easier to spot errors on paper than on electronic.

What does a mortgage statement look like?

Part of what your mortgage statement includes is the outstanding loan balance and the loan due date, or when you will pay off the loan in full. The statement will also include a breakdown of some of your payment history.

Your monthly mortgage statement contains a complete overview of your debt and the progress you are making toward paying it off. However, if you want to know what a mortgage statement looks like, here is an example:

Image Source: Bankrate.com

Understanding the details of a mortgage statement

• Account/Loan Number: This is the number associated with your loan. You can see it displayed when you log into your administrator's website. If you contact your administrator for any reason, you must provide this number.

• Due Date: Most mortgage payments are due on the first of the month. If you're set up with automatic payments, this due date reminds you when those funds leave your bank account. If you pay by mail, be sure to send it several days before the due date to ensure it arrives on time. However, servicers usually honor a two-week grace period before charging you a late fee.

• Amount Due: This is the total payment due on the due date, including principal, interest, escrow, and fees.

• Current Payment Due: This section details your monthly payment so you can see how much you're paying in principal, interest, escrow, and any fees.

• Contact Us: You'll find several ways to contact your administrator, such as their phone number and website.

• Account Information: This section usually includes your contact information, the remaining balance of your loan, your interest rate, and when your loan expires (called the "due date"). Is. It may also indicate a prepayment penalty, which is a fee your servicer will charge you if you pay off your loan early. Most mortgages these days don't charge prepayment penalties.

• Transaction Activity: This section provides dates and details of activity in your account for the past month, including when a payment was received. You can also find notice about late fees and their cost here.

• Past Payment Breakdown: This section shows your payment history for the previous month as well as this time of year (“year-to-date”).

How to get your mortgage statement

Most mortgage servicers will send you a monthly mortgage statement. You may receive the statement by mail or your administrator may give you the option to receive it electronically. If you need another copy of your mortgage statement, you can get one by contacting your lender. Many lenders offer access to past statements through an app or online banking portal. Alternatively, you can call your lender or visit a branch to get a copy.

How to review your mortgage statement

If you've been paying off your mortgage for a while, you might want to take a quick look at your monthly statement, make a payment, and get rid of it. But these documents provide valuable information about your credit. The next time you receive a statement, take the time to carefully review the following for accuracy:

• Balance and Interest rate

• Escrow payments

• Any fees

• A delinquency notice

Unless you have an adjustable rate mortgage (ARM), your interest rate should stay the same. If you have an ARM loan, your statement shows how long your current rate will be in effect.

However, the outstanding balance or principal changes when you pay off the loan. You can use this information to help guide decisions about accessing the equity in your home, refinancing it or selling it.

If you don't pay your mortgage automatically, keep an eye on late fees on your statement as well. Most lenders allow a 15-day grace period before charging a late payment fee.

Also, review escrow payments. These go into an escrow account that includes home insurance premiums and property taxes. Because premiums and taxes can fluctuate from year to year, your monthly payment may increase or decrease (perhaps increase) over time.

If you are 45 days or more behind on your mortgage payments, your statement will also include a "delinquency notice." If so, please contact your administrator immediately to explore support options.

How to make your monthly mortgage payments

Mortgage servicers often have several ways to pay off your mortgage, including:

• Automatic payments are withdrawn from a specific bank account.

• Pay online, by phone or mail

• Paying in person

Please note that most mortgage servicers require payment by check or electronic funds transfer. Most organizers do not accept credit cards. Your mortgage statement often indicates how your servicer accepts payments.

Do you need guidance on obtaining an updated mortgage statement to review your loan details? Log into your online account or contact your lender or servicer.

Frequently Asked Questions

How long should you keep your mortgage statement?

It's a good idea to keep your mortgage statements for three years. Even with electronic access, you never know when you'll need a hard copy. If you've noticed problems with your servicer, you may want to keep statements longer as proof of payment.

Do creditors need to send account statements?

Mortgage servicers are required by law to submit a mortgage statement each billing cycle. If the billing cycle is less than 31 days, administrators only need to send you a monthly statement.