Understanding Your Mortgage Statement

Your mortgage statement is a very important financial document that you will receive on a monthly basis. Many people are confused by the information that is displayed and what it means. Here are a few things to help you understand the information provided by your mortgage statement.

Identifying Information

When you open your mortgage statement, one of the first things that you should notice is the identifying information. They will print basic information like your name and address on the top of the statement. This will allow you to make sure that this is the right statement that you should be looking at.

Lender Information

You will also notice basic information about your lender displayed on the mortgage statement. It will show the name of the lender, the phone number at which you can contact them, as well as the address to send your payment to. They will often list a customer service phone number or website that you can visit in order to get help with any questions that you might have.

Payment Information

On the mortgage statement, you should be able to find information that pertains to your monthly payment. It will show you the date of the statement as well as what day your payment is due. In addition to that, you will be able to see exactly what your monthly mortgage payment is. They will also usually show you how much you paid on your last statement and when your payment was received. They will also usually break down your payment into the different components. They will show how much of your payment goes toward the principal and how much goes towards the interest on the loan. You will also see if any of your payment goes towards taxes and insurance. Part of your payment may also be for private mortgage insurance.

Loan Information

The mortgage statement will also show you unique information about your loan. It will usually tell you what the outstanding loan balance is as well as what the original balance was. It will usually provide you with a loan number to use for your correspondence with the company. They will also show you year-to-date totals of how much you have paid on taxes and insurance and interest. This section provides you with a general overview of the loan for your knowledge.

Activity

Your mortgage statement will usually show all of the recent activity that has taken place on your account. This will typically be displayed in an easy-to-read format with information over the last few months. For example, it will show when your last payment was posted as well as how much of the payment went to each expense. If your payment was late, it will show you how late it was and how much of a late fee was charged. If the lender made any payments on your behalf through an escrow account, they will also display that information in this section.