Your mortgage statement arrives in the mail each month. If you’re like most homeowners with a mortgage, you barely glance at the statement before sending your check to your mortgage lender.
But you really should take a closer look. You might be surprised at how much financial information your mortgage statement contains.
Thanks to the Consumer Financial Protection Bureau, monthly mortgage statements now contain standard loan information. The reason for this? Changes to the federal Truth in Lending Act specified by the Dodd-Frank Act stipulate that mortgage lenders need to provide their customers with the information they need to make wise decisions with their mortgage loans.
This is good for you. Your mortgage statement should now contain such important information as your loan’s interest rate and principal balance. You can refer to this information if you are deciding whether to pay off your mortgage loan faster or refinance it into a loan with a lower interest rate.
so, what does your monthly mortgage statement look like today? It should list your loan’s principal balance, or how much you still owe. It should also list your loan’s current interest rate and a description of any late fees that you might owe.
If you have an adjustable-rate mortgage loan, your statement should include a date when your interest rate might reset to a higher or lower value. If your loan has a prepayment penalty, your loan statement should spell out how it works and when it might be triggered.
Finally, your statement should contain a phone number and e-mail address that you can access to obtain more information about your mortgage loan and basic information about housing counselors and the work that they do.
In other words, your monthly mortgage statement is not a piece of paper to be ignored. Take a good look at it. The information it contains might lead you to change the way you pay your loan, perhaps inspiring you to add extra dollars to each payment or pay your mortgage two times a month.