Mortgage statements are evidence that you’ve paid your debt obligation for this month and in most cases, have paid down some of your mortgage principal. The question of how long to keep mortgage statements depends on your scenario but generally, considering hanging on to your home loan documents for at least 1-3 years. The answer is more nuanced depending on if you’ve paid off your mortgage fully, what type of mortgage you’re in, where you live, etc. When in doubt, always store them longer than shorter since once they are gone, it’s hard to get a new copy!
If you’re still paying your mortgage, planning to sell your property, or dealing with the property of a deceased person, you might want to keep your statements for years.
All this documentation can get overwhelming. So much paperwork, so many different rules. But don’t worry — not only will I provide exact instructions on what to keep, but I’ll also share best practices on how to store documents and where to keep them. We’ll also explore the best practices for keeping and maintaining mortgage bills and papers.
If you’re a homeowner with a mortgage, you likely receive a mortgage statement from your lender every month. But after making your monthly payment, you may be tempted to immediately throw away or shred these statements. Should you hold onto these documents? And if so, for how long?
As a homeowner and mortgage holder myself, I used to wonder the same thing. After doing some research, I’ve learned there are good reasons to keep your mortgage statements, at least for a certain period of time
In this article, I’ll explain what mortgage statements are, why you may want to keep them, and how long you should hang onto these records before finally recycling them. I’ll also provide some tips on the best way to store your mortgage paperwork based on my own experience.
What Is a Mortgage Statement?
First, let’s make sure we’re all on the same page regarding what exactly a mortgage statement is
Your mortgage statement, also called a mortgage billing statement, is a document sent by your mortgage lender that gives you key details about your home loan. Many lenders issue statements on a monthly basis, but you can usually access them online anytime as well.
Here are some of the key pieces of information typically included on a mortgage statement:
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Monthly payment summary: Shows your total monthly payment amount, broken down by principal, interest, taxes, insurance, and any fees.
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Loan details: Includes your loan number, interest rate, and property address.
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Year-to-date payments: Shows how much you’ve paid toward principal and interest so far this year.
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Transaction activity: Lists your payment history and any extra payments made.
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Client service info: Provides contact information if you need to get in touch with your lender.
Reviewing your mortgage statements helps you stay on top of your loan status and ensure your payments are being applied correctly.
Why Keep Mortgage Statements?
Now that you know what mortgage statements contain, you may be wondering why you’d want to actually hold onto them. Here are some of the top reasons:
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Tax documentation: Mortgage statements support any homeownership-related deductions you take on your tax return. The IRS requires you keep tax records for at least 3 years.
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Payment accuracy: Comparing statements helps you ensure all your mortgage payments are being properly credited. This is especially important if you make extra payments.
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Home improvements: Keeping statements helps you document any upgrades that may increase your home’s value when you eventually sell.
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Refinancing: Having statements handy lets you easily see your current loan details if you decide to refinance in the future.
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Errors: If you notice an error on a statement, you’ll need it to prove there’s an issue to your lender.
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Future maintenance: Statements can help you track home maintenance schedules based on when you bought items like appliances.
As you can see, those seemingly innocuous mortgage statements provide valuable information. Keeping them close by makes financial and homeownership tasks easier down the road.
How Long Should You Keep Mortgage Statements?
When it comes to mortgage statements specifically, you really only need to hold onto them for 1-2 years in most cases. The information they contain stays pretty relevant during that timeframe.
Here are my recommended timelines for keeping mortgage statements based on different situations:
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Standard records: Keep monthly statements for 1 year. After that, the info is outdated and you likely won’t need it.
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Tax documentation: Keep any statements supporting tax deductions for 3 years from when you file your return (the IRS standard).
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Refinancing: If you think you may refinance soon, keep statements from the past 1-2 years to help with the process.
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Errors or issues: Hang onto any statements where you notice problems indefinitely, until the issues are fully resolved.
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Home improvements: Keep statements for at least 2 years after doing any major upgrades or renovations to help document the work.
The most important thing is to always check statements for accuracy regarding your loan status and monthly payments. As long as those look correct, you can likely recycle older statements without worry.
Storing Statements Securely
While you don’t need to keep mortgage statements forever, you do want to store them securely for as long as you hold onto them. Here are a few tips:
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Scan or take photos of statements to upload to a cloud storage service so you have digital copies.
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Place any paper statements you’re saving in labeled folders or envelopes. This keeps them organized by year.
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Use a fireproof safe or lockbox to protect paper statements from damage.
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Let other people listed on your mortgage know where statements are stored.
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Set reminders to delete or shred statements after your target timeline.
Following these tips helps ensure your statements stay in good shape and can be easily accessed when needed.
Other Mortgage Documents to Keep
In addition to regular mortgage statements, there are other key home loan documents you should hold onto:
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Mortgage or deed of trust: Keep for the entire duration of your loan. This proves the lien on your home.
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Promissory note: Hang onto this agreement to repay the loan as long as you have the mortgage.
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Closing Disclosure: This lists final loan terms. Keep for the loan term.
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Home appraisal: This gives your home’s value. Keep until you sell or for the loan term.
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Payment receipts: Keep canceled checks or bank statements as payment proof for 1-2 years.
Store these documents just as securely as your mortgage statements. Having your important mortgage paperwork organized can save major headaches down the road.
Let Your Statements Guide You
As a homeowner with a mortgage, monthly mortgage statements provide insights into your biggest financial investment. Use them to monitor your loan, property value, and home improvements.
While you may be eager to recycle old statements, hanging onto them for 1-2 years can provide useful support for taxes, maintenance, and potential refinancing. Just be sure to store statements properly to keep them safe and accessible when needed.
Reviewing your statements gives you power over your mortgage. Let them guide you on your path to paying off your home loan and building your financial future.
How long should you keep monthly statements and bills?
For mortgage documents, we’ve answered this question in the earlier section of the article. You should keep your monthly mortgage statements for at least three years after paying off your mortgage.
For the rest of your monthly statements and bills, here’s how long Forbes says you should keep each:
- Monthly utility bills: 6 months – 1 year
- Insurance policies: Discard when you have bought new insurance policies
- Credit card statements: 60 days. But if they have tax-related expenses, keep them for three years
- Tax records (returns & receipts): 3 – 7 years
- Home improvement bills and statements: As long as you own the house
- Paychecks: 1 year
- Previous bank account number and bank statements: 3-7 years
- Major receipts: 3-7 years
- Tuition payments (fee challan etc.): 3-7 years
- Major hospital bills: As convenient
What is an annual mortgage statement?
Just like a monthly mortgage statement, an annual mortgage statement is a document that mentions essential mortgage details including the principal balance, current interest rate, current balance, duration of the mortgage, and lender’s contact details.
It is a summary of the mortgage payments you’ve paid in the entire year and is usually issued to you by your lender at the end of the year.
How Long Should You Keep Mortgage Statements? – CountyOffice.org
How long should a mortgage statement be kept?
You should keep your monthly mortgage statements for at least three years after paying off your mortgage. For the rest of your monthly statements and bills, here’s how long Forbes says you should keep each: Credit card statements: 60 days. But if they have tax-related expenses, keep them for three years How do you store important documents at home?
How long should you keep a home loan contract?
6.**Other Loan Paperwork (e.g., Refinancing Agreements)**: These documents should be kept for at least **three years**, although some experts recommend retaining them for up to **ten years** .
Do I need to keep monthly mortgage statements?
You’ll need to keep monthly statements, such as those detailing paid monthly mortgage loan fees, only as long as you feel necessary – perhaps a few months – to ensure the payments were credited to your account. Find A Mortgage Today and Lock In Your Rate! Get matched with a lender that will work for your financial situation.
How often do mortgage statements come out?
Many lenders issue mortgage statements once a month, but you can usually access them online at any time. Some of the information you might see on your mortgage statement includes: Your monthly payment summary: Your monthly payment summary tells you your totally payment due each month.