One of the terms you may hear about when you first get a mortgage is “mortgage statement”. If you want to know exactly what is a mortgage statement, you’re in the right place.
Below you’ll find the answer to that question as well as some key things you should know about mortgage statements.
What Is A Mortgage Statement?
A mortgage statement is a document sent by the house loan lender to the borrower each month. You can almost think of it as your mortgage bill. Because it will tell you how much you owe for the month on your mortgage.
But it’s more than a bill. Inside the statement you’ll also find a lot of other important information regarding your home loan.
Information You’ll Find On Your Mortgage Statement
Here are some of the most common pieces of information you can find on your mortgage statement:
- Your current mortgage balance
- The current interest rate of your mortgage
- The term of your mortgage
- Your remaining balance of your mortgage
- The taxes and/or insurance that are escrowed or paid by your lender on your behalf
- The contact information of your mortgage lender
- Any possible overdue payments on your mortgage
In short, a mortgage statement helps the borrowers to be aware of their current home loan information. For instance, a borrower can find their current balance by reading their monthly statement.
For those who do not have a fixed rate loan, the mortgage statement may be even more important to pay attention to. Because on it they can see the current interest rate that they have to pay for their mortgage.
Mortgage Statements Are Clearer Than Ever
It used to be that mortgage statements could be very different from lender to lender. And they may not always be so easy to understand. However, after the crisis in real estate in 2008, things have changed.
The Dodd-Frank Act was passed and a modern standardized model for mortgage statements is now being used by lenders. The Consumer Financial Protection Bureau (also known as CFPB) has created a mortgage statement template. This modernized template can be found on their website.
It is important to read the statement that you receive every month. Like what we have mentioned earlier, this will help you with what is new or current on your mortgage.
This can help you know how much you will pay for this month. You can also see if the lender has made any errors on your current statement.
Now that you have received and read your mortgage statement, you must not fall behind in paying your monthly loan payments. Not making your mortgage payments on time can make it difficult for you. So it is best to pay your mortgage on time.
There are four ways to pay your monthly mortgage payments. You can pay through the following:
- Online
- Phone
- In-person
There you have it! We hope that this has helped you gain some insight on what a mortgage statement is, how to make your monthly payment, and more!