This week at the Vermont Mortgage Company, we’re feeling energized. The weekend gave us time to recuperate, and now we’re heading into the week with full tanks! For this weeks blog posting we’re going to be looking at Monthly Mortgage Statements. Once you acquire your mortgage, you’ll be seeing these in your mailbox every month. They will spell out what you owe that month, as well as give you information on your loan. Not everyone majored in finance, however, so some of the info on there can be a bit daunting/vague. That’s why we have created this little guide to hopefully dispel any confusion you may get from these statements.
Check out this Example Monthly Statement we found on the New York Times. We will go through each section, step by step, to hopefully simplify things for you.
The first thing you’ll see is your name and address. That’s your new home! Pretty straight forward.
To the right of this is a box containing Account Number, Date, and Payment Due. This is just a brief summary of what you owe that month.
Account Information is where you will find your principal balance, interest rate, and other information on your loan.
Current Payment Due breaks down what you owe that month, and how it’s calculated. This will include interest, principal, and escrow (more on that next week!).
Contact Us, simple. How to get in touch with your loan company.
Transaction Activity is where you’ll find information on your recent activity. In the example, there was a monthly payment made, and a late fee. This was due to the payment being sent 2 days late. Naturally, we know our clients are always on top of payments!
Past Payments Breakdown is where you’ll find the run down on your payments from the previous month, and the year to date. Much like the Current Payment Due section, it’ll be broken down into the different sections, so you know what money is going where.
Important Messages is a common thing to have on a monthly statement. This will just have any important notices for you from the lender. Always check these just in case!
If you don’t make payments online, and instead send a check, the you will use the bottom section of the form (this is usually perforated so you can tear it off easier). The slip is included with the check you mail to the lender to make the payment for that month. Going paperless saves the hassle of mailing the check and gives you piece of mind that your money will get there instantly.
While mortgage statements aren’t totally standardized, the information should all be very similar. Every statement will spell out your due payment, and your remaining principal, interest rate, etc. If there’s anything you don’t understand, feel free to use the Contact Us info, and the lender will be more than happy to assist.
We hope this guide is enlightening for those first timers! We know the information can be tricky at times, so we are always available to help you with any questions you may have. Feel free to ask us at 802-863-2020, or visit our website! Stay tuned for next weeks blog post on Escrow.
