Ever wonder if the loan payoff statement your lender provided during the closing process was accurate? This is something we usually take for granted and never bother to check the figures ourselves. Confirming your mortgage loan balance is a yearly task.
Some lenders provide a running monthly statement, showing the old loan balance, the amount of the payment broken down into interest and principal, and the new loan balance after crediting the principal payment. Keep in mind that when you make a mortgage payment to your lender, interest is calculated first on the then-outstanding balance, and the difference goes toward reducing principal.
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