Annual Mortgage Statement – Traders Studio

What is an annual mortgage declaration?

An annual mortgage statement is a statement sent by a mortgagee to a mortgagor. The statement generally shows interest paid on a mortgage, current mortgage balance, current interest rate, loan term, remaining amount of mortgage term, taxes collected, and / or insurance purchased. pay the lender on behalf of the borrower, the lender’s contact information, and if there are arrears (or late payments) on the mortgage.

The purpose of the annual mortgage statement is to provide the borrower with important information related to the loan, account activity, and information about other financial obligations for which the borrower is responsible. A mortgage statement can contain a history of payments from the date of the last statement issued.

A mortgage statement is provided to the borrower periodically, at least once a year, and can be provided to the borrower upon request. The information provided on the statement helps the borrower make the correct deductions on his or her tax return. The annual mortgage statement is also called Form 1098.

Key takeaways

  • An annual mortgage statement is a document that the mortgage holder sends to borrowers.
  • This statement provides the borrower with key information related to the loan, account activity, and balances due or other financial obligations for which the borrower is responsible.
  • A mortgage statement is provided to the borrower periodically, at least once a year, and can be provided to the borrower upon request.
  • In the United States, the annual mortgage statement is also known as the year-end statement, mortgage interest statement, or Form 1098.

How an Annual Mortgage Statement Works

Annual mortgage statements are important documents that are released to the buyer. They are also key financial documents that contain confidential information. As with other critical financial documents, anyone preparing or handling these documents must keep them private and ensure security. The recipient should also review this document to ensure its accuracy. Borrowers should check the annual statement against their records and report any errors or oversights related to the statement, outstanding balance, or payment history to the lender immediately so that a corrected statement can be issued, if required.

Borrowers should securely store mortgage statements, and if they seek clarification on any of the calculations with their lender, they should request such clarification in writing. In the United States, the annual mortgage statement is also called the year-end statement or mortgage interest statement. It is also known as Form 1098.

The Internal Revenue Service (IRS) requires a lender or other business to send an annual mortgage statement to any individual or entity that has paid interest of at least $ 600 during a particular calendar year. In the case of a mortgage, this form will list the mortgage interest paid and the items related to the loan. Borrowers need this form if they wish to claim any related tax deductions to which they may be entitled. Taxpayers would need to consult their accountant or tax preparer or check IRS guidelines to see if the interest they paid is deductible and, if so, how to include this information on their tax return.

Most financial institutions now make annual mortgage statements, as well as monthly statements and other account information and updates, accessible for customers to access online and print for their records. This offers additional convenience because borrowers can review and print their statements as soon as they are available, without having to wait for documents to arrive by mail or email. Mortgage holders can verify the numbers on their statements using mortgage calculators that can be found online.

Because an annual mortgage statement informs the borrower of the time remaining on the mortgage term, it may be helpful for a lender to consider renewing their mortgage. That is, it can be a useful warning that you should start looking for a different interest rate if you decide that you want to go with a different lender instead of your current lender.

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