Keep Mortgage Statements Safe: How Far Back Should You Go?

Keeping financial documents is essential for staying on top of your finances and ensuring you have the necessary proof of ownership. While it is easy to let mortgage statements and other loan documents pile up, it is important to know which documents to keep and for how long. In this paragraph, we will discuss how long you should keep your mortgage statements and other related documents.

How long to keep mortgage statements after death

While there is no government-issued requirement on how long you should keep mortgage statements after a loved one's death, it is recommended to keep them for at least three years. This is because you will receive a new statement every month, and the information on the old statements becomes outdated quickly. However, some professionals recommend keeping them for up to 10 years, especially if you notice any mistakes on the statements, as you will want to dispute the error and ensure that statements with errors do not become the norm.

It is also important to keep other documents related to the ownership or sale of a property, such as the deed and the promissory note, until the loan is paid off or for the entire duration of homeownership. These documents can be safely stored in a locked fireproof cabinet or safe deposit box.

Additionally, it is beneficial to keep records of any major home improvements, such as remodels or additions, and records of expenses incurred while buying and selling, such as legal fees and agent commissions. These documents can be essential when filing home insurance claims, calculating capital gains tax, or planning home improvement projects.

How long to keep mortgage documents

Keeping mortgage documents is essential, but it can be challenging to know which ones to keep and for how long. Here is a detailed guide on how long to retain various mortgage documents.

Firstly, it is important to differentiate between mortgage statements and other mortgage documents. Mortgage statements, which provide information on the status of your loan, can be discarded after a few months. However, it is recommended to keep them for at least a year, especially if you need to ensure that payments were credited to your account accurately. Some sources suggest keeping them for about three years, especially if there are any mistakes or discrepancies.

On the other hand, other mortgage documents, such as the deed, promissory note, and purchase agreement, should be kept for much longer. The U.S. government and financial experts recommend retaining these documents for as long as you own the property. These documents are essential for proving ownership and understanding the terms of your loan.

Additionally, if you have refinanced your loan, it is advisable to keep the old documents for as long as you have a mortgage on the same property. These documents serve as evidence of any changes or updates to your interest rate.

Furthermore, certain documents should be kept for specific periods. For example, the Closing Disclosure, which outlines the fees paid to the lender and third parties, should be kept for at least a year and longer if you are deducting discount points from your income taxes. Similarly, home warranty documents should be retained as long as the coverage is active, and inspection reports should be kept for two to three years.

In the case of selling your home, it is recommended to keep mortgage documents and related records for at least seven years after the sale. This includes proof of mortgage payoff, the closing statement, and receipts for capital improvements. If you plan to pass on the property to your heirs, keeping annual mortgage statements can be beneficial.

Lastly, always ensure that your important documents are stored securely. Consider using a locked fireproof cabinet, a safe deposit box, or digital storage solutions for added protection.

How long to keep monthly mortgage statements

It is not necessary to keep monthly mortgage statements for long. You can discard them once you have checked them for accuracy and ensured that your payments have been credited to your account. However, it is a good idea to keep physical copies of your mortgage statements close by for a short while, even if your lender provides digital copies.

You should keep important real estate records, such as deeds, promissory notes, and proof of title insurance, in a locked fireproof cabinet or safe deposit box. These documents should be retained for as long as you have a mortgage on the property. The U.S. government recommends keeping deeds for as long as you own your home. Additionally, keep records of any major home improvements, renovations, or repairs, as these can impact your taxes.

In the context of refinancing, it is advisable to retain refinancing agreements and related documents for at least three years, although some professionals suggest keeping them for up to ten years. This extended retention period is beneficial if you need to refer to them due to unexpected changes in your monthly interest rate or inaccuracies in your monthly statements.

It is worth noting that certain documents, such as the Closing Disclosure, should be kept for at least a year after closing on your mortgage. If you are claiming deductions on your income taxes related to discount points, the Closing Disclosure should be retained for as long as you utilize that deduction.

How long to keep mortgage statements after refinancing

It is recommended that you keep your mortgage documents and related home sale records for at least seven years after selling your home. This includes proof of mortgage payoff, the closing statement, and receipts for capital improvements. If you decide to refinance your home, you should hold onto your documents for at least three years. However, it is beneficial to keep these documents for up to 10 years in case there are unexpected changes in your interest rate or payments, or if there is a statement error.

Monthly mortgage statements detail how much you owe on your loan and what you have already paid off. You can discard these whenever you want, but keeping them for a few months is a good idea to ensure that your payments have been credited to your account.

It is important to keep certain paperwork, such as the mortgage note and deed, until your loan is paid off or at least until you sell your home. You should also keep records of any major home improvements, such as remodels or additions, and records of expenses incurred while buying and selling, such as legal fees and agent commissions.

It is recommended that you keep important real estate records in a locked fireproof cabinet or safe deposit box. Make sure to tell any other party named on your mortgage where the files are and how to access them.

Where to keep mortgage statements

Where should you keep your mortgage statements? Well, it depends on your personal preference and how long you plan to keep them. If you're keeping hard copies, a locked fireproof cabinet or safe deposit box is ideal. You should always keep your mortgage documents in a safe place while you still own the home.

If you're keeping soft copies, you can scan your documents via CamScanner (or any other similar application) and store them as soft copies. You could also take photos of your documents and keep them in a password-protected folder on your computer or phone.

If you're keeping hard copies, you could also keep them in a folder and store them in a lockable filing cabinet. You could also keep them in a box in a secure location, such as a locked basement or attic.

If you're keeping soft copies, you could store them in a password-protected folder on your computer or phone. You could also upload them to a cloud storage service, such as Dropbox or Google Drive.

It's important to keep your mortgage statements and other documents in a safe and secure place. It's also a good idea to make sure that anyone else named on the mortgage knows where the files are and how to access them.

Frequently asked questions