How to read your mortgage statement

A mortgage statement is a monthly bill provided to you by your lender each month. It details your loan balance and information about your mortgage.

Pat Howard 1600

Pat Howard

Published May 10, 2019

A mortgage statement is a document that’s prepared by your lender and provided to you on a monthly basis — it shows your balance, payment history, and the different parts that make up a mortgage payment.

Reading your monthly mortgage statement after you’ve bought your first home can seem a little bit like trying to transcribe ancient Greek. There’s a lot of terms and numbers to digest, and attempting to decipher it all can be a tad overwhelming to say the least.

In this guide, we’ll walk you through the different sections of your mortgage statement so you won’t be caught off guard when it comes time to make your first payment.

In this guide:

1. Mortgage account information

When you open your mortgage statement, your account information will typically be listed at the top and is the first section you’ll see. Here’s what you’ll see in the account information section of your bill.

  • An account or loan number, which is your personal account number that helps your mortgage company identify your loan. Be sure to keep your loan number private to prevent mortgage fraud.
  • The statement date, which is when the mortgage statement was issued.
  • The payment due date, which is when your next mortgage payment is due. Failure to pay by your due date could result in late fees.
  • The amount due, which is your monthly mortgage payment that includes your house payment, or principal, interest, escrow payments, fees, and any other amounts due. If you’re late with your mortgage payment, the late fee may also be displayed here.
  • The type of mortgage you have, such as adjustable or fixed-rate. If you have an adjustable-rate mortgage, your next adjustment period will be indicated.
  • The interest rate, which is the rate you’re paying for the current billing period. If you have a fixed-rate mortgage, your interest rate will never change, but if you have an adjustable-rate mortgage, it could change from year to year.
  • The lender’s customer service information, which includes everything from their property address and website to the mortgage customer service line to the payment mailing address.

2. Past payments

This section of your bill gives you somewhat of a snapshot of your total mortgage payments for the current year, and will specifically detail how much has gone to principal, how much has gone to interest, and how much has gone into your escrow account.

Still shopping? Our mortgage calculator can tell you approximately how much your monthly mortgage payment will be.

3. Explanation of amount due

The explanation of amount due is a further breakdown of the amount you owe for the current month. It will detail the following:

  • The principal payment, which is the portion for the current month that’s paying off the remaining loan balance.
  • The interest payment, which is the portion for the current month being applied to interest on the remaining loan balance.
  • The escrow payment, which is the portion for the current month going into your escrow account. Your escrow account pays for property taxes, homeowners insurance, and private mortgage insurance if it’s required. (If you have a fixed-rate, fully amortized mortgage, and your mortgage payment goes up, it's probably because your taxes or insurance rates went up.)
  • The total payment for the month, which is the sum of the previous three items.
  • Any fees, which could include charges like late fees.
  • The past due amount, which will be indicated if you still owe money from any previous months’ statements.

4. Transaction history since last statement

This section details the date, description, and amount of all recent charges or credits to the account as of the borrower’s last mortgage statement.

For example, your transaction activity could detail an escrow reimbursement or credit if, at the end of the year, your mortgage company determines you paid too much for property taxes or homeowners insurance premiums and have a surplus in your account.

5. Important messages

This section will detail any important information regarding your account.

It may also include useful information, like what to do if you can no longer afford your mortgage payment. Some lenders will provide U.S. Department of Housing and Urban Development (HUD) resources or counselors if that’s the case.

6. Delinquency notice

If your bill is 30 to 45 days late, your lender will include a delinquency notice at the bottom of your mortgage statement. They’ll give you a date that you must pay the bill by to avoid further account action.

Failure to pay by the end of that time frame could result in your loan being reported to a credit bureau and may ultimately end up with you losing your home in a foreclosure.

Policygenius’ editorial content is not written by a certified financial planner or advisor. It’s intended for informational purposes only and should not be considered legal, financial, or investment advice. Consult a professional to learn what financial products are right for you.

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