Resources > Glossary > Payment Letter to Borrowers

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Payment Letter to Borrowers

Function: noun

Definition 1:
The payment letter to borrowers discloses the borrower's actual monthly payment of principal and interest plus any additional payments determined by escrow. Reserve for taxes is one of the categories in the itemization of fees. Reserve for insurance is another item in the payment letter to borrowers. Reserve for flood insurance is an additional item. The loan number and an address where to send funds would be included in the payment letter to borrowers. the Payment letter to Borrowers is typically not a notarized document. Part of the amount paid in these payments may go into an escrow account that goes to pay for insurance and taxes.

Definition 2:
In addition to the Payment Letter to Borrowers, the Truth in Lending Disclosure also discusses the interest payments over the life of the loan. The Note also discusses what the payments in the loan are, when they are due, and how much they are for including principal and interest.

Definition 3:
In addition to telling the borrower what the total payment amount will be, this document states how long these payments must continue for and identifies an ending date for the payments.