How to Read Your Mortgage Statement, Line by Line
Most homeowners glance at the amount due and move on. But the monthly mortgage statement is one of the few documents that shows exactly how your payment is being split, how much you still owe, and whether anything looks wrong. Knowing what each section means takes about five minutes and can catch errors early. The payment summary The top of the statement usually shows the amount due, the due date, and any late fee that applies if the payment arrives after the grace period. Many statements also show how much was received since the last statement. If the amount due changed from last month, look at the escrow section first, since taxes and insurance are the most common reason a payment moves on a fixed-rate loan. How your payment was applied This is the section most worth reading. A payment breakdown shows how the money was divided between: Principal , which reduces what you owe Interest , which is the lender's charge for the period Escrow , which is held for property ta...