If you’ve just bought a home, you may wonder when you’ll receive a mortgage statement. This isn’t something you need to organize, as you’ll automatically receive an annual mortgage statement as part of your bank’s administrative process. Existing homeowners can also request a current mortgage statement if they require one as documented proof of their mortgage balance. However, your bank may charge you a small fee for sending you an updated version.
But what is a mortgage statement, and what information does it provide? Know this information, and you’ll know when to request your statement (and pay the fee).
Key Takeaways
- Your mortgage statement is a document outlining your payment history, including how much you owe and how much you’ve paid in interest and taxes over the past calendar year for your records.
- You will need your mortgage statements if you sell or refinance your home.
- Most lenders will send you a copy at the end of the year, however you can request one at any time.
What Is a Mortgage Statement?
A mortgage statement is similar to a credit card statement. It’s an annual report prepared by your bank and sent to you for your records. The annual statement outlines how much of the principal (the original money borrowed) you still owe on your mortgage. It also details how much you’ve paid in taxes and interest over the past calendar year.
On this statement, you can expect to see:
- Contact information as the mortgage holder (mortgagee)
- Current mortgage balance
- Current interest rate
- A history of your payments from the date of the last statement
- The amount of time remaining on the mortgage term (known as the maturity date)
- An amortization schedule (showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term)
How to Read a Mortgage Statement
Mortgage statements may vary by provider, but in general, they all provide key details about your mortgage loan.
You may see an opening balance, which is how much you owe at the beginning of the year (or other time period) and an outstanding balance, which is how much you currently owe. You should also see the maturity date, which is the end of your mortgage term, and when you’ll need to renew your mortgage, plus your payment frequency, interest rate and your mortgage payment amount.
Other essential information you may see includes a past payment breakdown, the amount being paid into your escrow account (if applicable), any late fees incurred and other important information, including how to contact them.
Where Can I Find My Mortgage Statement?
Typically, you are sent a statement annually, but you can request a copy at any time. Depending on your lender, you may be able to access this statement online, or you can contact your lender directly and ask to be sent a copy. You may also see your mortgage balance owing when you check your credit score, which can be a quick check-in when you don’t need a full breakdown.
In general, you should keep your mortgage statements for six years if you are using them to claim deductions based on a home-based business or work-at-home arrangements. If not, you can keep the most recent statement.
What Should I Check on My Mortgage Statement?
Believe it or not, banks and mortgage lenders can make mistakes. It’s important to check your statement carefully for errors. Also, check to make sure the balance owed is correct. If you spot a problem or notice a discrepancy, notify your mortgage lender immediately.
The mortgage statement will also tell you how much time you have left until you renew your mortgage term. This is the number of months remaining until you renew your outstanding mortgage balance. Use this information to review current interest rates and to determine if you should wait until your mortgage term is up or opt to break the mortgage contract, pay the penalty, and renew at a more competitive rate.
When Do I Need a Mortgage Statement?
A current mortgage statement is a necessary document if you’re in the process of selling your property or refinancing with another bank. If you’re selling, a statement provides proof of your existing mortgage and the amount owing to determine the balance you need to pay at closing. A mortgage statement can also be the basis for discussing refinancing options if you wish to swap banks or mortgage products to take advantage of a better interest rate.
It’s usually on the document checklist for a mortgage broker, agent or advisor. If you need to request a statement outside of the typical annual, end-of-year timeframe, your bank or mortgage lender may end up charging you a fee. While this fee can range from $25 to $250, it’s fairly standard as the lender must process your request outside their standard documentation process.
It may be a helpful document for tax purposes if you have a home-based business or as an employee working from home and you are claiming the mortgage interest when filing your taxes.
Do I Need a Mortgage Statement If I Plan to Sell?
You will need your statement if you plan to sell or refinance your property with another lender. You need this statement to prove the existing balance and confirm the pay-off balance upon closing on a sale if you sell or the balance if you plan to refinance.
Typically, lenders are comfortable with a statement from within the same year. But, if you’ve had any changes to your mortgage agreement, they’ll need an up-to-date version of the statement.
Most mortgage professionals are happy to review your mortgage statement with you to ensure you understand, answer any questions or review the numbers if there is any discrepancy.
