When you take on a mortgage, you take on a large responsibility to your lender and yourself. Your mortgage statement can help you monitor your home loan's financial standing, ensure all the informatio...
Understand Your Mortgage Statements: What You Need to Know
When you take on a mortgage, you take on a large responsibility to your lender and yourself. Your mortgage statement can help you monitor your home loan's financial standing, ensure all the information provided is accurate, and stay up-to-date on any changes to payments or other areas of the loan.
Should you find your mortgage statements confusing, it can be difficult to use this tool to your advantage. In this blog, we can help you develop a better understanding of the details in your mortgage statement, how they impact you, and why you need to understand them in the first place.
If you're seeking further information about mortgage basics, the pros and cons of different rates, wondering if it’s the best time to sell your current home, or if you just want to consult with a professional, check out our additional resources on our website and blog page! SWBC Mortgage has got you covered!
What is a Mortgage Statement?
A mortgage statement is a document intended to update you on the details of your home loan. You will typically receive one from your loan servicer every billing cycle. The details that are covered in a mortgage statement include:
- Contact information for your mortgage servicer
- Your outstanding loan balance
- The expected loan payoff date
- Recent payment history
- Amount due
- Payment due date
- Important messages
How to Properly Review Your Mortgage Statement
Your mortgage statement is your tool for ensuring accuracy in your investment. Reviewing it properly is key to making sure your payments are being made on time and are accounted for. To thoroughly review your mortgage statement, carefully evaluate your interest rates, escrow payments, fees, delinquencies, and balance for accuracy. Does the statement match your records? Are there any mistakes?
Knowing and understanding what type of loan you have is crucial for properly reviewing your mortgage statement. For instance, if you have a fixed-rate loan, your interest rate should never change. However, if you have an adjustable-rate mortgage, your interest rates will change with the market.
At SWBC Mortgage, we know that finding the right home loan for your unique situation is key. That is why we offer a wide range of loan options and guidance to our clients.
If you find any deviations from accuracy or need to discuss delinquency relief options, reach out to your servicer right away using the contact information at the top of the statement.
The Mortgage Statement Breakdown
[Graphic idea: Could We Include an Example of a Mortgage Statement outline?]
Understanding the different sections of your mortgage statement can give you a leg up on understanding and financially protecting your home loan. While different servicers will outline their statements differently, we have broken down a few key sections you will likely encounter.
Mortgage Servicer Information
At the top of your statement, you should be able to find information about your mortgage servicer, including the company’s name, contact information, and location. If you need to contact them about your home loan, this section can help you reach them. You should have your account number, which will also be listed somewhere on your statement, at the ready should you need to contact them.
Payment Information
In this section, you will find your payment due date and the amount due for your next payment. Your amount due will often be outlined in your statement, breaking down the monthly cost of your escrow, principal, and interest. This allows you to see exactly how much of your payment is going to each of these sections. It is best to ensure your payment is received by the due date, but many servicers do offer a grace period as needed. If you pay after the grace period, you will likely be charged a late fee, which you will find on your statement, as well.
Principal Balance
Your statement will include a section that details your outstanding principal balance. This allows you to understand how much you owe on the principal, or the amount originally borrowed. You can make payments toward the principal on top of your monthly payment. However, it is crucial to inform your loan servicer that your extra payments contribute to your principal in writing.
Escrow Balance
Your escrow balance is an account your lender sets up to help pay your property taxes and homeowner’s insurance. Reviewing your escrow balance allows you to see how much you are contributing to this account and where/when it is being spent.
Past Month’s Transactions
This section acts as a receipt for the past months and years’ charges, payments, and notices of fees. This section allows you to ensure all payments you have made are accounted for and accurate.
SWBC Mortgage: Here to Help
Finding the right mortgage for your home doesn’t have to be a drag. Our loan officers offer the ideal package of loan options and professional guidance to make your journey to securing a loan for the home of your dreams as smooth as possible. Find a local loan officer today!
Let Us Know What You Thought about this Post.
Put your Comment Below.