What Is a Mortgage Statement?

Understanding your mortgage statement

As a snapshot of your mortgage, your mortgage statement helps you stay on top of your payments and alerts you to any changes in loan status, amount due, current loan balance or interest rate. This monthly document should align with the terms you and the lender agreed upon when you closed on your home.

A mortgage statement can also act as a powerful home equity tracking tool. As you reduce your balance owed, you can use your statement to track equity growth and watch your outstanding principal decrease month by month. This insight can help you make informed decisions when it comes to refinancing, selling your home, or applying for a home equity loan or home equity line of credit.

Lenders and servicers are required by law to provide timely and accurate statements.

“For many first-time homeowners, understanding their monthly mortgage statement can be confusing,” said Tai Christensen, former 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

Who sends your mortgage statement?

Note that your monthly statement may not come from the mortgage lender that originated and funded your loan. It’s normal for a different company to take over the administrative side of your loan after closing. This loan servicer processes your payments, manages your escrow account and keeps track of your payment history.

Your mortgage statement may show several different ways to contact your loan servicer, including a customer service phone number and payment address. There may be a different address provided for you to use if you need information or help fixing an error.

How to get your mortgage statement

You can usually opt to receive your monthly mortgage statement by mail or e-mail. The exact date you’ll receive a statement each month depends on the lender’s billing cycle. You can get your mortgage statement history through your online account or by contacting your lender.

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 should remain the same throughout the life of the loan. You’ll need this number if you want 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.

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 may look different on your statement depending on whether you have a fixed-rate or adjustable-rate mortgage (ARM), but it should match the loan documentation from your closing. If you have a fixed-rate mortgage, the interest rate will generally stay the same every month. However, if you have an ARM, your statement may indicate when the current rate period ends and when you can expect a payment change. 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

If it’s listed on the statement, you can review the maturity 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 each of the components collectively known as PITI — principal, interest, taxes and insurance.

Money that’s earmarked for property taxes and homeowners insurance will go into an escrow account. However if your taxes and insurance are paid separately from your mortgage, your payment breakdown may not include escrow information.

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 payment includes homeowners insurance and property tax, the lender uses an escrow account to house these funds for an annual 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

Enrolling in autopay can help you avoid owing late fees if you miss a payment due date.

Transaction history and activity

Your transaction history includes a summary of 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.

Other important mortgage documents

Your monthly mortgage statement keeps you updated about your home loan on a regular basis, but there is other mortgage documentation you may encounter. Each of these documents provides distinct information to help you understand your progress and obligations.

• Mortgage payoff statement: This document lists your mortgage’s precise payoff amount at the time the statement is issued, including the outstanding principal, interest and fees. You’ll want to request a payoff statement if you plan to refinance, pay off your mortgage early or consolidate your debt. You may also receive one if you default on your mortgage and the loan is sent to collections.
• Amortization schedule: This detailed table outlines how much of each monthly payment goes toward the principal vs. interest over the life of your loan. You can request an amortization schedule from your lender or create one yourself using spreadsheet software or an online amortization calculator.
• Mortgage interest statement: Also known as IRS Form 1098, this statement summarizes the total tax-deductible mortgage interest you paid over the course of a year, along with any mortgage insurance premiums. If you purchased your home during the past year, it will also show any points paid. Your lender should send you this form every year, no later than January 31.

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

Note that your statement may differ from what we’ve discussed above. It might include additional items, or some information may be lacking. For example, if you pay for property taxes and homeowners insurance directly, you won’t see escrow account information. Additionally, the required disclosures on statements for U.S. residential mortgage loans vary by jurisdiction, so you may see state-specific legal language alongside federally mandated disclosures.

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

FAQ

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.