What Is a Mortgage Statement?

Understanding your mortgage statement

A mortgage statement is a monthly document that details the latest information regarding your home loan. The statement should align with the terms you and the lender agreed upon when you closed on your home. Lenders and servicers are required to provide timely and accurate statements to you as a borrower.

“For many first-time homeowners, understanding their monthly mortgage statement can be confusing,” said Tai Christensen, chief communications officer for Arrive Home, a company specializing in down payment assistance programs. “However, it is important to closely monitor this statement each month.”

» MORE: Best mortgage lenders for first-time buyers

How to get your mortgage statement

You can receive your monthly mortgage statement by mail or e-mail, and you can typically set up your preference with your lender. Some lenders may offer only one option or the other. The exact date you’ll receive a statement each month depends on a lender’s billing cycle.

If you want to get your mortgage statement history, you can do so through your online account with your lender, or else by contacting your lender by phone or in person.

What’s included on a mortgage statement?

Each month, you can expect to receive a mortgage statement from your mortgage lender, which includes valuable information about your loan. Here’s what you’ll find on your statement:

Account number

Your account number is your loan’s unique identifier, and it’s necessary to have it if you need to contact customer service or set up online account access. It’s typically included on the payment coupon or in the account information summary on your statement. It should remain the same throughout the life of the loan.

Remaining loan balance

Your remaining loan balance will be listed on your statement. Note that the balance listed on the report is not the payoff amount. If you need a mortgage payoff quote, you typically need to call the loan servicer for the exact amount.

Interest rate

The interest rate should match the loan documentation from your closing. The rate shouldn’t change unless you have an adjustable-rate mortgage (ARM), in which case your lender should provide you with 60 days' notice of a rate change.

“Paying attention to the principal and interest portion of the mortgage statement is especially crucial,” Christensen said. “This allows the borrower to carefully track the progress of their loan repayment and ensure it aligns with the agreed-upon terms and conditions.”

Maturity date

The maturity date is sometimes listed on the statement. You can review this date to see the current expected loan payoff date, but this will change if you make additional payments toward the balance.

Payment details

Your payment details include the minimum amount due and the due date. The statement breaks it down further by showing how much of the payment goes toward the loan principal, interest and escrow payments.

Payment details also include your year-to-date payments. This is especially helpful at the end of the year as you prepare for tax time. You can use it to estimate the amount you’ve paid in interest for your taxes and reference the property tax information.

Escrow account

If your lender collects your homeowners insurance and property tax payment each month, then the lender uses an escrow account to house the funds for a yearly payout. The mortgage statement includes the monthly escrow amount, which may fluctuate yearly, depending on any changes in insurance or taxes.

“Reviewing the mortgage statement allows a homeowner to identify changes in their taxes and insurance, which could potentially increase their payment,” Christensen said. “An increase in taxes or insurance can become a hardship if the borrower is not aware that these changes have occurred.”

How to make payments

Most loan servicers offer multiple payment options, including:

• Online payments, including help setting up automatic withdrawals
• Paying by phone with a customer service representative or automated service
• Mailing a check with the payment coupon included in the statement
• Paying in person with a check (or possibly a credit card) if your loan provider has physical locations

Transaction history and activity

Your transaction history includes a summary of the recent payments made to the account. It also includes any late fees, other charges and past-due amounts.

Prepayment penalty

Most mortgages don’t have a prepayment penalty, but there are some cases where it includes one if the loan is paid in full prior to a specific date. If this applies to your loan, a prepayment penalty reminder might appear on the statement.

Customer service options

The mortgage statement should include details regarding customer service options. This is important in case you have any questions about your statement, see any mistakes or have trouble making monthly payments.

How to read your mortgage statement

Generally, the most important information is the payment information and due date. Staying on top of your monthly payments helps you avoid late fees, and on-time monthly payments go toward improving your credit score since the lender reports your monthly payment activity to the three credit bureaus.

When reading your mortgage statement, it’s also a good idea to pay attention to:

• The balance and interest rate listed
• Your escrow payments
• Any fees listed
• Any delinquency notices

These are the areas where mistakes can happen. If you notice any discrepancies or if you have any questions, discuss them with your provider as quickly as possible.

“Early detection of an error ensures it is quickly addressed with the lender, which can minimize the risk of any financial complications,” Christensen said.

» MORE: Principal vs. interest: What's the difference?

Bottom line

It may feel like just another piece of mail, but your mortgage statement is a useful tool for keeping track of payments and any changes to your loan. This is where you’ll not only find key information such as your account number and loan details, but the statements also alert you to any upcoming changes to your loan or if there was a mistake with any transaction activity.