Guide to Mortgage Statements | Bank Rates

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your mortgage Your statement contains important information about your balance and payments.

A mortgage statement is a document that contains up-to-date details about a loan. monthly paymentBy law, your mortgage lender or servicer must send you a statement each billing cycle.

Mortgage statements are typically mailed once a month. It can also be viewed at any time on the lender’s or servicer’s website. You may have the option to receive them electronically, but as a practice, it’s often easier to spot errors in hard copies than in emails, so we recommend sticking to paper statements.

Your monthly mortgage statement will give you a snapshot of your outstanding loans, including remaining balance, maturity date (the date your loan is fully repaid), and other information. We also analyze some of your payment history. Here’s an overview:

Provided by Consumer Financial Protection Bureau/Illustration by Hunter Newton/Bankrate

  1. Account/Loan Number: This is the number associated with your loan. It may appear when you log into the servicer’s website. You must provide this number if you contact the servicer for any reason.
  2. Due date for payment: Most mortgage payments are paid at the beginning of the month. If you have automatic payments set up, this due date tells you when those funds will be deducted from your bank account.
  3. price: This includes principal, interest, escrow and fees.
  4. Current payment terms: This section will itemize your monthly payments so you can see exactly how much you are paying for loans and escrow and fees.
  5. inquiry: This section provides various ways to contact the Servicer.
  6. Account information: This section typically includes contact information, loan balance, interest rate, and the end date of the loan term (referred to as the “maturity date”). again, prepayment penalty, which is the fee charged for paying off the loan early. Most mortgages do not impose an advance payment penalty.
  7. Trading activity: This section shows dates and descriptions of activity on your account from the last month, including when payments were received.
  8. Breakdown of past payments: This section shows your payment history from last month and your payment history so far this year (“Year to Date”).

If you’ve been paying off your mortgage for a while, you might not hesitate to throw away your statement, but it does provide valuable information about your loan. The next time you receive your statement, please take the time to check the following for accuracy.

  • balance and interest
  • Escrow payment
  • commission
  • delinquency notice

unless you have variable rate mortgage (ARM), your interest rate should remain unchanged. If you have ARM, your statement will show how long your current rate is valid.

However, as you pay off the loan, your balance or outstanding principal continues to change. You can use this information from your statement to guide decisions about accessing equity in your home, refinancing, or selling your home.

If you don’t auto-pay your mortgage, also watch out for late fees on your statement. Most lenders allow him a 15-day grace period before charging late fees.

Additionally, confirm the escrow payment.these are Escrow account Covers homeowners insurance premiums and property taxes. Premiums and taxes can fluctuate from year to year, so monthly payments can increase or decrease over time.

if you late mortgage payments After 45 days, your statement will also include a “Delinquency Notice”. In such cases, contact the servicer immediately to discuss remedial options.

some borrowers Store mortgage statements However, if you don’t need a paper trail, you can safely discard it, as it will likely be accessible online. But never remove it.

These should be kept in a safe place for as long as you own the property, even after the loan has been paid off.

Apart from your mortgage statement, you will also receive an annual report. Escrow account statementThis includes an escrow payment estimate, so make sure you keep a close eye on it. Helps you understand if your account is underpaid or if you have overpaid. Another tip from the pros: Compare the property tax on your statement with what the tax office paid on their website. Conflicts may arise if the servicer changes.

You can do it pay the mortgage There are several ways to do this, but most of them pay by automatic payment, online, or by mail. Of course, the downside of mailing is the risk of late payment. Please allow enough time to send the check.

Some lenders also allow you to pay in person at a branch location or over the phone. Your statement will outline the accepted payment methods.

One method that doesn’t work is credit cards. Major card issuers don’t allow the use of plastic for mortgage payments, and lenders may disagree.

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