When obtaining a mortgage, you’ll encounter a substantial amount of paperwork, ranging from the documents received at closing to monthly statements from your lender. It’s natural to question how long you should retain these statements and other mortgage-related papers, particularly in today’s digital era. Here’s a guide on managing your mortgage statements and home-related documents:

How long should you keep mortgage statements?

When it comes to mortgage paperwork, whether you receive it via mail, email, or through an online account, monthly statements have a short lifespan — they’re updated monthly, after all — so you can safely dispose of them whenever you choose.

“Since monthly statements contain ever-changing information, there’s no need to hold onto them for an extended period,” says Than Merrill, CEO of FortuneBuilders, a real estate investor coaching firm. These documents can be discarded promptly, especially if you can access them online. At most, keeping one handy for proof of mortgage details or home address might suffice.

Other mortgage documents, like agent agreements and addendums, can typically be discarded after three years, advises real estate investor Warner Quiroga, president of Prestige Home Buyers in Long Island, New York, citing the IRS auditing statute of limitations. While Quiroga suggests disposing of the home inspection report, it’s often recommended to retain it as evidence of the property’s condition at purchase.

However, experts generally recommend keeping important mortgage documents, such as the mortgage note, for the duration of the loan or longer, potentially until you sell your home.

What information your mortgage statements contain

Your mortgage statements typically include the following details:

  • Upcoming Payment Information: Details about your next mortgage payment, including the amount due, how much goes towards principal and interest, and totals for fees and escrow (if applicable).
  • Loan and Account Details: Basic loan information such as your account number and property address. It also includes your outstanding balance, current interest rate, and maturity date (when the loan will be fully paid off). If there’s a prepayment penalty, it may also be noted.
  • Transaction History: Similar to a bank statement, this section shows all charges and payments made since the last billing cycle.
  • Past Payment Breakdown: A summary of your progress in paying down the mortgage balance, including the amount paid last month and the total paid so far this year.
  • Contact Information: Provides options for reaching out to your loan servicer if you need assistance or have questions.

Other important homeownership documents

Mortgage statements stay with you throughout the duration of your home loan. However, before they begin, several other documents accompany a home purchase. Here they are, roughly in the order you’ll encounter them:

Buyer’s agent agreement

“This document represents a contract between you and your real estate agent,” explains Quiroga. “It typically outlines the agent’s responsibilities to you and how they will be compensated.”

Seller disclosure

A seller disclosure document details any known issues with the home that the seller is aware of. “It provides information about the property’s condition and any known issues that could affect its value or safety,” such as structural defects or hazards like asbestos or lead paint, explains Quiroga.

Home inspection report

A home inspection report is a comprehensive document prepared by a professional home inspector detailing your home’s condition, including potential hazards or issues.

Title insurance document

The title insurance document from the settlement or title company contains details about your title insurance policy, safeguarding the lender (and optionally you, if chosen) against any ownership issues related to the property.

Promissory note

The promissory note, also known as the mortgage note, is the legal agreement you sign with your lender. In this document, you commit to repaying the debt along with interest, using your home as collateral. According to Quiroga, in some states, this document may be referred to as a deed of trust.

Closing disclosure

The closing disclosure, provided to you at least three days before your closing date, “summarizes the final details of your mortgage loan and the property sale,” Quiroga explains. “It includes information such as the loan amount, term, and type, the interest rate, total costs, and escrow fees.”

Purchase agreement

The purchase agreement or contract, signed by both the buyer and seller at closing, usually details the home’s purchase price, closing date, and other critical terms. It may also incorporate addendums and amendments that outline any modifications or additional details not originally covered in the initial purchase and sale agreement, which was signed when your offer on the home was accepted.

Deed

The deed signifies your ownership of the home and is signed by both you and the seller during the closing. According to Quiroga, “The primary purpose of a deed is to transfer the legal rights of a property from one individual or entity to another.”

Which mortgage documents are most important to keep?

While you can dispose of your monthly mortgage statements, there are other documents crucial to retain as long as you own your home. These include:

  • Deed: “Above all, never discard or misplace your home’s deed, as it’s the most critical document to retain,” advises Leonard Ang, CEO of iPropertyManagement. The deed serves as proof of homeownership, essential for transferring ownership when selling the property.
  • Purchase agreement and seller’s disclosures: These documents detail your home’s condition at the time of purchase. They are valuable for reference if issues arise with the property.
  • Closing documents: These include the closing disclosure, deed of trust, or mortgage note, outlining the financial and legal terms of your home purchase, including loan details and repayment obligations.
  • Home inspection report and home warranty: The home inspection report provides insights into your home’s condition, useful for future maintenance or renovation projects. A home warranty details coverage for appliances and systems, crucial for understanding repair and replacement options.
  • Property survey: This document delineates your property boundaries, essential if you plan to make additions or changes to your land.

These documents should be kept indefinitely as they may prove invaluable for legal, financial, or maintenance purposes in the future.

Why is it important to keep mortgage documents?

Now that we’ve provided an overview of how long to retain mortgage documents, here are compelling reasons why it’s crucial to keep them:

  1. Insurance and Legal Matters: Your mortgage paperwork can be essential in various situations such as insurance claims or legal inquiries. For example, your homeowners insurance agent may request specific documents if you need to file a claim.
  2. Satisfaction of Mortgage: Keeping your mortgage documents is vital in case your lender failed to file a satisfaction of mortgage with the local recording office after you paid off your loan. These documents can prevent disputes during future home sales.
  3. Ownership and Title Challenges: If you encounter issues like foreclosure or challenges to your property’s title, having your mortgage documents on hand can help prove your ownership of the property.
  4. Financial and Tax Considerations: Your mortgage statements may be necessary for determining capital gains tax liability, particularly when selling your home. They can also be useful for financial planning and preparing for major home renovations.

In summary, the advice is straightforward: “Keep everything,” advises D’Annucci. Preserving your mortgage paperwork ensures you’re prepared for any future challenges or inquiries that may arise.

What is the best way to store mortgage paperwork?

Ideally, store original paper mortgage documents in a fireproof and waterproof safe at home or in a safe deposit box at your bank. Alternatively, keep them in a locked filing cabinet, organized in a binder or folder by chronological order with labeled tabs indicating the month and year, suggests Ang.

Additionally, maintain a digital copy of your mortgage documents in cloud-based storage or on a secure hard drive. However, Quiroga advises caution, noting that hard drives can be lost and cloud storage can be vulnerable to hacking. It’s wise to retain the original paperwork for security.

When disposing of documents, ensure to remove sensitive information such as account numbers, Social Security number, and date of birth using a redaction pen or stamp, advises D’Annucci. Then, securely shred or completely burn the paperwork to protect your privacy.

What to do if your mortgage documents are lost or damaged

If you’ve misplaced or damaged any original mortgage documents, there’s no need to panic, according to Gabriel Freitas, broker/owner at Voyant Realty in Andover, Mass.

Freitas advises homeowners to prioritize keeping the “original note from a closing package, as well as any discharges when mortgages are refinanced or paid off.”

“These two documents are often crucial, so having them readily accessible is important,” he emphasizes.

Many entities involved in real estate transactions, such as lenders and title companies, typically retain copies of these documents. If you require a physical copy of a specific document, contacting the relevant company or your local recorder’s office may facilitate obtaining a replacement.