Old mortgage loan statements -- keep or toss?

8 years ago

I've had 3 loan holders on my townhouse since I bought. The original bank (Wachovia, at the time), which then sold to Chase, and now it's another bank that bought my loan when I refinanced a few years ago.

What do I absolutely need to keep? Perhaps the first couple statements on each, and then the final closing statement for each? My current loan holder doesn't send monthly statements with the bill, only annual statements plus forms when I need to pay more for my insurance/tax fund.

Also, that thick stack of papers that comes with the refinancing task -- any need to keep any part of those?

(I do understand that more than a few pages will have my Social Security # and will have to be shredded.)

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rob333 (zone 7b)

8 years ago

Personally, I'd keep it all until the lien is paid off fully. Maybe others wouldn't, but something that important, I would. I kept all my car financing stuff till the title came in. I was glad to get to destroy it. And until my university diploma was in my hands. What a lot of paper to get to recycle! But then, I might be OCD (in that area). So maybe someone has a more reasonable idea?

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Comments (12)

sushipup1
8 years ago
Dump monthly statements, keep annual statements and keep loan papers as long as you own the house.
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Elmer J Fudd
8 years ago
last modified: 8 years ago
The statute of limitations for income taxes is 7 years, but 5 years is effectively it. For documents with income tax consequences (income, deduction or cost basis of assets), those are numbers to keep in mind.

A good Keep or Toss test is - "Have I ever needed to refer to this or something like this before, or can I envision a circumstance when I'd need it?"

If not "Yes", then "No". "I might" = "No". Most people keep far too much far too long. Even when "Yes", most docs can be obtained from the source. A compromise approach is to scan what you want to keep, make a backup copy (or two if you're nervous) and keep one at a second location.
User
8 years ago
Dump what you get in the mail and save an electronic copy of your annual statement that should be available online.
jemdandy
8 years ago
The most important statement is the final one showing the property is paid for and the lien removed.

During the life of the loan, I kept all my statements, but I agree with others above that you need to keep only the annual summaries and all the statements for the current year. Its good to have the beginning statement to have a complete record and to show the exact start of the loan and/or start of ownership.
vicsgirl
8 years ago
last modified: 8 years ago
We bought our house in 1981, then re-financed three or four times. For a while, we kept the "payoff" document from each bank. After the mortgage was fully paid off, I went to the County Clerk and got a certified copy of the deed showing no mortgage or guarantor or liens on the property. I then happily shredded the bank papers and burned them up in the barbecue. (Sort of a "mortgage-burning).
redtartan
8 years ago
I'd keep all the annual statements from the current mortgage and the last info before refinancing. We only get annual statements so if you also get monthly, maybe keep the last three months, but really if you need your info your lender should gladly give it to you or you'll be able to find it online.
cynic
8 years ago
For clarity, there is no "statute of limitations" on income tax in the event of suspected fraud and for other things there are reasons they can go back farther than 7 years. The 5 and 7 year (and even 10 year) numbers are tossed around frequently in that most people wouldn't need anything from farther back than that but there's NO absolutes when it comes to the IRS! LOL

How much paperwork are you really talking about? A file folder maybe? If it makes you more comfortable to keep an envelope or folder with it, do it. Maybe it's a non-issue to keep a folder or two somewhere. For me, once it's paid off and the title is clearly in my name I wouldn't keep any of it since much could likely be received from the vendor if needed but for what would you possibly need it?

Lately I scan things in and make frequent backups. Far easier to find it on the computer than to find where it's filed in the even I need it.
Elmer J Fudd
8 years ago
Those who file fraudulent returns don't worry about abiding by record keeping rules. Nor do the tax authorities depend on their doing so, income is usually reconstructed using various third party and alternative information sources. Did you know that?

I became a CPA with a tax specialty in 1974. The 7 year statute is federal law. It's absolute and isn't subject to any agency's interpretation. The 5 years I mentioned is based on my experience.

What's your background to answer these basic questions?
chisue
8 years ago
It would be helpful to have a comprehensive list of all the documents a person needs to keep, along with how long to keep them. I'm sure it would be long, and would include things that aren't part of everyone's life, but I could 'mine' the list for my own record-keeping needs.
sushipup1
8 years ago
Just Google "records to keep." Here's a list from BankRate.com.

http://www.bankrate.com/finance/personal-finance/how-long-to-keep-financial-records.aspx
LucyStar1
8 years ago
I kept the loan papers for as long as I was deducting the points from my income tax.

Old mortgage loan statements -- keep or toss?

rob333 (zone 7b)

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