Mortgage Statement Example: Key Details Explained

A mortgage statement is a detailed document your lender issues, usually monthly, which describes the status of your home loan.

It will indicate how your loan principal and interest are allocated, your current mortgage balance, and your payment history record. For those with an escrow balance overview, it will detail contributions for taxes and insurance. All these need to be understood to manage your home loan details well and avoid any surprises.

The important things you ought to know when understanding an example mortgage statement include understanding the details that would help you manage your loan efficiently.

The sections found in a mortgage statement include:

1. Statement Date

The date your mortgage statement was printed is your statement date. It will thus help you understand where your billing cycle begins.

2. Loan Number

This section shows you your loan number, which can be used to identify your account. You will use this number if you ever call your servicer for any help.

3. Interest Rate

This section shows how much your mortgage is being calculated. If you have an adjustable-rate mortgage, this rate may change periodically.

4. Type of Loan

Shows the type of loan you have. Some of the common types are a 5-year Adjustable Rate, a Variable Rate, or a Fixed Rate.

5. Special Handling Code

This sequence number assures printed statements will be in proper order, and a special handling code can be placed herein to note any specific treatment needed on the account.

6. Servicing Loan Officer

The name, branch location, and contact number of the servicing loan officer handling your loan.

7. Balances Before Billing Entries

This section provides balances as of the statement date, including the outstanding principal amount, which is crucial for understanding mortgage payments and decisions regarding home equity, refinancing, or selling the property. The balances also include amounts for:

• Installment Fund
• Principal Reserve Fund
• Undisbursed Loan Proceeds
• Insurance Loss Proceeds

8. Customer Name and Address

This section shows your name and address as recorded in the loan system:

• First Line: Borrower's name from Account Title 1
• Second Line: Borrower's name from Account Title 2 (if applicable)
• Third Line: Address Line 1
• Fourth Line: Address Line 2 (if applicable)
• Fifth Line: City, State, and Zip Code

9. Any Transactions Between the Statement Date and the Due Date 

This notice informs you that any transactions between the statement date and the payment due date may impact the amount due on your mortgage.

10. Effective Date Column

This column indicates the effective date of each listed transaction. It also includes due dates for amounts owed.

11. Interest Rate Message

Here, you’ll find information about any interest rate changes on your loan that have occurred since the last billing statement.

12. Interest Column

The interest column displays interest charges or credits, along with descriptions indicating whether the interest is due or being credited.

13. Principal Column

This column lists any principal amounts due or credited, with accompanying descriptions to indicate whether they are due or being applied as a credit.

14. Total Amount Due

This subheading lists the amount of money due on each, totaling principal, interest, and charges, which may be added as service charges or contributions to escrow.

15. Subtotal Amount Billed

Reflects the subtotal of the billed amount before adjustments including credits for interest or escrow contributions.

16. Interest Credit (Escrow Account)

If applicable, this section shows interest credits from your escrow account that will be applied to your payment if not paid by the due date.

17. Payment From (Escrow Account)

Here, the principal amount drawn from your escrow account is shown, applied toward your payment if not paid in full by the due date.

18. Total Amount Due

This is the net amount owed, aggregating all interest and principal adjustments. If the sum is $0.00, there is no outstanding payment.

19. Late Fee and Payment Received at Office After (Late Fee)

In case your loan payment was delayed, this column shows the late payment fees charged on that loan along with default interest, if there is any such charge. In case a cheque was received post the due date, this column would show the cheque amount with per diem charges for delay in payment also.

20. Keep This Portion For Your Records

This section has a perforated line where you can tear off the bottom portion of the statement for your records, but the top portion is used for the submission of payment.

21. Date, Branch, Loan Number, Frequency

Here, you will get more information about the statement date and the loan branch, along with the loan number and how frequently you pay.

22. Due on or Before

Here is the due date for your payment. Remit by this date if you wish to avoid late fees or interest charges.

23. Total Amount Due

This section repeats the total amount due, which includes all charges for that billing period, as line 18 points out.

24. Amount Enclosed

Allows you to manually write in the total amount enclosed with the payment coupon when sending a check.

25. Reserve Fund, Installment Fund, Special Principal Payment, Prepaid Interest

These blank lines enable you to allocate any extra amounts to specific loan categories, such as reserve funds, special principal payments, or prepaid interest.

26. Address Change Marked

If you have moved, you can check this box to indicate that your address has changed. There's an area on the back side of the payment coupon where you can provide the new address details.

27. Customer Name and Address

Shows the borrower's name and address for both the billing statement and the payment coupon:

• First Line: Borrower's name from Account Title 1
• Second Line: Borrower's name from Account Title 2 (if applicable)
• Third Line: Address Line 1 (loan address)
• Fourth Line: Address Line 2 (if applicable)
• Fifth Line: City, State, and Zip Code from loan address

28. Association Name and Address

This section shows the association's name and address, which is aligned to work with a window envelope for easy mailing. It is used to return the payment coupon with your payment.

Understanding Key Details of Mortgage Statement

To understand a mortgage statement example, let's break it down into digestible sections:

Loan Information

Your mortgage statement will include the mortgage loan number, loan type explanation of fixed-rate or adjustable-rate mortgage, and the current mortgage balance calculation. It may also have important dates, including a mortgage payment schedule and a next-due date.

Payment Breakdown

The most important factor here is the breakdown of what your monthly payment represents and, therefore, how much goes toward paying the principal and interest on the loan versus other costs like adding to your escrow accounts. You may also see if there are fees or adjustments for late payments from past months or changes in your adjustable-rate mortgage.

Escrow Account Explanation

If you have an escrow balance summary, this section shows the funds set aside for property taxes and insurance. Be sure to review this section because any bump in the property taxes or homeowners insurance premiums could raise your mortgage payment or lead to an escrow shortage.

Interest Rate and Loan Amortization

In the case of an adjustable-rate mortgage, your mortgage statement example would thus list the interest rate, the total interest paid, and any upcoming changes based on the loan’s terms. For a fixed-rate mortgage explanation, the statement confirms that your rate is steady throughout the loan term. Understanding loan amortization is crucial to manage your mortgage effectively.

Why Would You Need a Mortgage Statement 

Your mortgage statement is probably one of the most critical aspects of your finances. This is because:

• Track Payment Progress: You can track your current and past payments, including how much you’ve paid off versus the interest, giving you a better understanding of your finances.
• Prepare for Changes: If you have an adjustable-rate mortgage, staying updated on interest rate changes helps you anticipate changes in your monthly mortgage statement.
• Financial Planning: An escrow balance overview lets you plan for property tax payments and insurance premiums, so you don’t have any surprises in your mortgage payment schedule.

How to Download Mortgage Statements

Most lenders now offer online portals for easy access to your mortgage statement template.

Once you log in, you can download both your monthly mortgage statement and annual mortgage statement. Many lenders will mail paper statements if that’s what you want, and you can reach out to customer service to get older statements or to ask for a detailed loan payment summary of a specific period.

Final Words 

Understanding a mortgage statement is a means of having control over finances. 

Reviewing account breakdown mortgage and escrow account contributions including details of loan principal and interest, empowers you to have self-control in making decisions involving your home loan. Making sure to check on your statements regularly keeps you on track with payment history record checks, tracking changes in an interest rate, and avoiding unwanted surprises.

FAQs

What is a mortgage and a mortgage statement? 

A mortgage is a secured loan obtained to buy some property, usually secured through the property itself. The mortgage statement shows the outstanding balance of loans, mortgage payments made monthly, and details on principal and interest.

What is the mortgage rate statement? 

A mortgage interest statement outlines the interest rate or the interest rate applied to your mortgage. It can be fixed or variable, which influences how the payments of your mortgage are structured over time.

How do I get mortgage documents?

You can get all of your mortgage documents either by logging into your lender's online portal or by requesting paper copies from customer service.

Navigating the details of your mortgage statement can feel overwhelming, but you don't have to go it alone. Our team of experts is here to guide you through the process, ensuring you fully understand every aspect of your home loan. Take the first step toward mastering your financial goals—contact us today!