Understanding The Mortgage Payment Cycle And Your Statement
May 25, 2023 4-minute read
Author: Kevin Graham
You’ve just closed on your mortgage from Rocket. Congratulations! Whether you’re a new homeowner or you’ve refinanced to accomplish a financial goal or complete a home improvement project, you’ve taken a big step and we’re happy to be there with you.
Now that you’ve got your mortgage, you may be curious about what comes next. This post will run through the key details.
The Billing Cycle
If you’re a new client, you might be wondering about the timing of your first payment. You’ll get your first statement approximately 2 weeks prior to the due date of your payment. You can view your first payment due date and amount on your Rocket Mortgage® account.
Rocket Mortgage mails physical statements between the 15th and 20th of each month if you opt for a physical copy. If you’re not into getting a hard copy, you can also go paperless and save a tree or two. If you do opt for electronic statements, your statement will typically be visible within your Rocket Account 1 by the 20th of the month.
It should be noted that you don’t have to wait for a statement to make a payment.
Your payment for your most recent statement is always due on the 1st of the following month. We have a grace period for our clients until the 16th. This may be different if you have an existing home equity line of credit. If you make a payment past the 16th, you’ll be charged a late fee. If your grace period is impacted by federal holidays or Sundays, this is outlined in your statement.
See What You Qualify For
Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.
If a sign-in page does not automatically pop up in a new tab, click here
Making A Payment
We have several payment options available for you.
Once you set up your Rocket Account and verify your loan information, among the quickest ways to make your mortgage payment is to utilize our Payment Center. You’ll be able to set up bank account information and choose from a few different options:
- One-time payment: Select your bank account and the day you want the money taken out and applied to your mortgage payment. You’ll also have the option to put additional money toward your principal to pay off your mortgage faster or add additional money to your escrow account.
- Autopay: You can set it up so we automatically withdraw from your bank account for your mortgage payment each month and you don’t have to think about it. You pick the date. Although you could set this up through your bank, we recommend using our system so you’re paying the right amount even if your escrow changes.
- Biweekly payments: By choosing to pay half your mortgage payment every 2 weeks, you give yourself more manageable increments. While the money is taken from your bank account, the payment is applied once the full amount is received. Additionally, because there are 52 weeks per year, you can make the equivalent of one extra monthly mortgage payment each year that’s applied directly to your principal. This helps you pay off your loan faster, with less lifetime interest.
One more note on biweekly payments. You’ll need to be a month ahead in your mortgage payment because the first biweekly payment is only half. When you set up biweekly payments, you can choose a date between the 1st and the 14th of the month. Payments are made every 2 weeks after that. You can also set up biweekly payments when you close.
Paying On The App
We also have a Rocket Mortgage mobile app. You may be familiar with it if you used it to fill out your application or share documents. But it can also be used to manage your mortgage, including all of the payment options we just went over.
Paying Over The Phone
You’re also able to use our interactive voice response (IVR) system to make a payment over the phone at (800) 508-0944. This can be used to make a one-time payment or set up autopay.
Paying By Mail
If you want to pay by mail, you could choose to wait for the coupon that comes with your statement. You don’t have to, though. You can make the check payable to Rocket Mortgage, LLC. Include your loan number in the memo line. You can send it to the following:
Rocket Mortgage, LLC
P.O. Box 6577
Carol Stream, IL 60197-6577
Beyond that, be sure to specify if you’re sending extra money to be put toward your principal or escrow.
Breaking Down Your Statement
Your statement has several features, but we’ll highlight a few of the big ones here. You can also view this information on your Rocket Mortgage servicing account.
- Amount due and due date: The first thing you’ll see is the amount you owe for the month and when it’s due in the top right-hand corner. This will also show when the grace period ends and how much the late fee is if you pay after that point.
- Loan information: The top left-hand box on your statement shows your original loan amount, but also how much you have left to pay off and what the balance is in your escrow account. If you have an adjustable-rate mortgage, your current interest rate will be shown as well as the fact that a future rate change is possible.
- Payment history: This section shows a complete breakdown of your prior payment and the total put toward principal, interest, escrow and any other fees year to date. The last section shows any escrow disbursements for taxes and insurance.
- Next payment breakdown: At the top of the other side of the table, there is a breakdown of your upcoming payment. This shows how much is going toward principal and interest. There is also an escrow account breakdown, if you have one, that includes the amount going toward property taxes, homeowners insurance premiums, mortgage insurance or paying off a past escrow shortage based on a change in taxes and homeowners insurance.
The Bottom Line
Congratulations on your new mortgage! Your payment is always due on the 1st, but there’s a grace period. Additionally, we have a number of convenient payment options and you can always see what part of your payment is going where.
Check out your Rocket Account to get started today.
1 Rocket Account is your account created in connection with Rocket Mortgage, Rocket Loans or Rocket Homes Real Estate LLC. Rocket Mortgage, Rocket Loans and Rocket Homes Real Estate LLC are separate operating subsidiaries of Rocket Companies, Inc. Each company is a separate legal entity operated and managed through its own management and governance structure as required by its state of incorporation and applicable legal and regulatory requirements.
2 Apple, the Apple logo, and iPhone are trademarks of Apple Inc. registered in the U.S. and other countries. App Store is a service mark of Apple Inc.
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