A lot of times while cleaning out, people tend to toss away important documents that should be kept safely. One such document that is becoming a victim to the toss away is the mortgage statements. Since these documents are bulky and more than often take up a lot of room in houses, owners try to get rid of them as soon as possible.
Keep reading to get a glimpse of what a mortgage statement is, how long should you keep mortgage statements, and get a glimpse of a mortgage statement template.
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What is A Mortgage Statement?
A mortgage statement is a piece of document for the individual whop opted for a mortgage. This document is prepared and given out to the person who signed up for the mortgage by the lender. Mortgage statements are issued out to the borrowers every month which shows them their stats relating to the mortgage. It is also given to the borrower annually which simply accumulates all the details of the year.
A mortgage statement consists of various details for the aid of the borrower. It outlines the various features that make up your mortgage amount, your balance, your history of the payment of the loan, major points related to the loan, and any other finances that the borrower has to cover. This is what one can find generally in a mortgage statement which is issued out monthly.
An annual mortgage statement, on the other hand, will provide the borrower with a summary of their total payments, key information about the interest amount, and the remaining balance for the mortgage to be completed.
Why Is Mortgage Statement Important?
A mortgage statement is a crucial document as it helps in a ton of ways. It is important because with the help of it borrowers can easily have a proper system of documentation regarding their mortgage payments. It also helps them to track their payments and stay on top of it. The updated statement issued out every month is a great help for all those people who forget to complete their payments and end up getting their credit score lowered.
Furthermore, mortgage statements are a legal document and should be kept safe as they can help you out in tricky situations. They can act as proof to your previous payments and once the transactions are completed, the statement issued is helpful to avoid any trouble with your lender.
Also, mortgage payments of each month come with a delinquency notice for those people who haven’t paid their dues in around 35-40 days. This is a great way to keep a track of your payments and avoid any legal trouble that can go as far as you losing your property.
How Long Should You Keep Mortgage Statements?
Since mortgage statements when piled up can take up a lot of room, the one question that keeps coming up is how long should you keep mortgage statements. There is no said date as to how long you should keep them after the transaction is complete but it is said to keep them safe with you for at least three years after the final payment.
If three years sound a lot to you, just make sure that you have a copy of your final annual mortgage statement when your payments get completed. You can chuck out the earlier ones if it is a dire situation but keeping a final copy for at least three years is recommended.
What Does A Mortgage Statement Look Like?
To be able to read your mortgage statement properly, one must know what does a mortgage statement looks like. This issue can be solved beforehand by simply taking a look at the various mortgage statement template and mortgage statement samples available.
By taking a look at this document beforehand, you can avoid facing complications in reading it when you finally do get it.
This mortgage statement sample here can help give you a very clear idea of what a monthly mortgage statement looks like. As we can see in this document the box on the upper right-hand corner of the statement states the amount to be paid in the current month and the amount that you will have to pay in case you don’t pay it on time.
Moving down below, the box on the right-hand shows the current amount to be paid and how they got that figure. It shows the amount of interest and principal and escrow that has to be paid.
There is also a row that denotes the total fees and then the final amount for the current month is accumulated.
The box on the left is pretty clear as well. It gives you a detailed look into your account and plans details. It includes the address of the borrower, the maturity date of the mortgage, and the interest rate at which the borrower will be getting charged, etc.
Furthermore, there is also a box that shows your transaction history to keep both the borrower and the lender updated on all the payments. This is also great as with the help of this compartment, borrowers can easily spot if any discrepancy is made.
As stated above, the mortgage statement also usually have some messages given down below in the message box. Make sure to read them and stay updated. You can also browse through various mortgage statement templates if you are a lender and want to know how to make one. The mortgage statement templates which can be found online easily are the best place for beginners to start from. You can look through the various templates provided and find one that suits your needs.