It’s easy to let statements and other loan documents pile up, and it can be tempting to throw these papers out, especially if your mortgage is close to maturity. But how long should you keep your mortgage statements – and which mortgage documents are worth keeping?
We’ll answer these questions, plus give you some advice on the best way to store your documents.
Refinancing your mortgage can seem like a messy process with all the paperwork involved You sign document after document, receive statements in the mail, and may wonder if you really need to keep it all. Knowing what to shred and what to store is an important part of mortgage refinancing
Why Keep Any Documents After Refinancing?
There are a few key reasons to hold onto certain paperwork even after you refinance
-
Tax purposes – Mortgage interest can often be deducted on your taxes, so having documentation helps support your deductions. The closing disclosure and statements detail the interest paid.
-
Loan audits – On rare occasions, mortgage lenders may audit loans to ensure proper procedures were followed. Keeping documents proves the process went smoothly.
-
Future reference – Details on any home improvements or capital gains can be useful when selling the home down the road,
-
Unforeseen issues – Problems sometimes crop up years after refinancing, like a mistake on monthly statements. Documents provide backup if needed.
The Essential Documents to Keep
While you don’t need to keep every single scrap of paper, there are a few essential documents you should store long-term after a refinance:
-
Deed: This establishes homeownership and should be kept indefinitely as long as you own the home.
-
Mortgage and note: These spell out the loan’s terms. Keep for the duration of homeownership.
-
Closing disclosure: Details fees paid and interest rate. Store for a minimum of 1 year.
-
Purchase contract and seller disclosures: Hold for a few years in case undiscovered issues emerge.
-
Home warranty: Keep until expiration in case repairs are needed.
-
Home inspection report: Retain for 2-3 years as reference on home systems.
-
Refinance documents: Keep for at least 3 years, up to 10 years recommended.
Documentation You Can Toss
Feel free to purge the following documents to clear out space:
-
Old mortgage statements: Shred once you verify the payment data.
-
Insurance policies: Toss old policies when new ones are issued.
-
Utility bills: Discard after one year.
-
Pay stubs: Shred after one year.
-
Tax returns: Keep for 7 years then destroy.
Tips for Organizing Your Paperwork
With so many documents floating around, keeping everything organized can seem daunting. Here are some tips to make it easier:
-
Create a filing system: Set up labeled folders or binders for key documents. This makes them easy to locate later.
-
Scan documents: Convert paper documents to digital copies. This allows you to access them easily while decluttering.
-
Use cloud storage: Upload scanned documents to a secure cloud service for anytime access from multiple devices.
-
Shred sensitive materials: Invest in a quality shredder to destroy documents containing personal information.
-
Review annually: Go through files once a year and shred anything no longer needed.
Ask Your Lender for Guidance
If you are unsure whether to keep certain refinance-related documents, ask your lender for guidance. They can provide clarification on which documents may be valuable for you to retain.
Refinancing can spur a paperwork frenzy, but keeping your documents organized helps ensure you have the information on hand if needed. Focus on storing key documents long-term while purging unnecessary paperwork. With a system in place, you can navigate the document details of refinancing with confidence.
How long should I keep my home insurance statements?
You should keep your homeowners insurance statements and account information until you get a new policy. You may want to keep them even longer for tax or accounting purposes.
FAQs: Mortgage statements and other mortgage papers
You can throw away old mortgage statements, but proceed with caution, because in some cases you should keep old mortgage papers for a long time. For example: Keeping the promissory note, Closing Disclosure, deed of trust and proof of title insurance for the life of a loan is typically required.
Should I Save Old Mortgage Documents After Refinancing? – CountyOffice.org
FAQ
Do I need to keep old mortgage documents after refinance?
It’s a good idea to keep any paperwork on your refinance for at least 3 years. However, some professionals might recommend keeping it for at least 10 years.May 29, 2024
How long should you keep mortgage documents?
It’s best to keep the most recent mortgage documents for at least three to seven years, even after the home is sold. If you received a certificate of satisfaction for paying off a mortgage, then this document should be kept as well. These documents may become necessary in the case of an IRS audit or estate settlement.
What paperwork to keep after a mortgage is paid off?
Mortgage payoff documentation
These may include a statement showing that your balance is paid in full, such as: Canceled promissory note. Certificate of satisfaction. Canceled mortgage or deed of trust.
Should I save my mortgage statement?
It’s a good idea to keep your mortgage statements for three years. Even with electronic access, you never know when you’ll need a hard copy.
How long should you keep a refinance document?
Like your mortgage payment statements, you should keep any paperwork on your refinance for at least 3 years. Although, some professionals might recommend keeping it for at least 10 years. What documents to keep after refinancing? Deed. The U.S. government recommends that you hang on to any deeds as long as you own the property.
Is there a reason to keep old mortgage papers?
Is there any reason to keep old mortgage papers? It’s best to keep the most recent mortgage documents for at least three to seven years, even after the home is sold. If you received a certificate of satisfaction for paying off a mortgage, then this document should be kept as well.
What documents should be kept when refinancing a home?
Let’s take a closer look to get a better understanding. Keep the Most Important Papers: Any paperwork that is specifically for your home purchase or original loan should be considered important papers and saved for the life of the loan. Loan paperwork, such as refinancing agreements, should also be kept. What happens to old mortgage when refinance?
Should I preserve my mortgage documents after a refinancing?
It is imperative that you preserve your mortgage documents following a refinancing in order to protect your financial interests and guarantee seamless real estate transactions. You can handle your paperwork and the mortgage industry with confidence if you adhere to the tips in this guide.
How long should I keep the old mortgage paperwork?
How long should I keep the old paperwork?—T.S., Bergenfield, N.J. A. Each time you refinance you only need to keep the closing summary that documents your costs and the paid-in-full letter from the old mortgage.
Should you keep old mortgage documents?
However, it’s crucial to be cautious when disposing of old documents, particularly those related to mortgages. While you don’t need to keep every piece of paperwork forever, there are some documents you’ll need to retain for future reference. Which documents should you keep, and which ones can you discard?