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 want to discard 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?

Your mortgage statement includes the outstanding loan balance and the loan due date, which is when you will pay off the loan in full. It 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. It is displayed when you log into your administrator's website. You must provide this number if you contact your administrator for any reason.

• 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, send it several days before the due date to ensure it arrives on time. However, servicers usually honour 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 loan balance, interest rate, and when your loan expires (the "due date"). Is. It may also indicate a prepayment penalty, 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 and this time of year ("year-to-date").

How to get your mortgage statement

Most mortgage servicers send monthly mortgage statements. 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 should 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

Your interest rate should stay the same unless you have an adjustable-rate mortgage (ARM). 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 repay the loan. This information can help guide decisions about accessing your home's equihome'sfinancing it, or selling it.

If you don't pay your mortgage automatically, check your statement for late fees. 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 fluctuate yearly, your monthly payment may increase or decrease.

If you are 45 days or more behind on your mortgage payments, your statement will also include a "delinquent" 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 by mail

• Paying in person

Most mortgage servicers require a check or electronic funds transfer payment, and 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 them. If you've had no problems with your servicer, keep statements longer as proof of payment.

Do creditors need to send account statements?

By law, mortgage servicers are required to submit a mortgage statement each billing cycle. Administrators only need to send you a monthly statement if the billing cycle is less than 31 days.