A 12 month ledger in mortgage refers to a detailed record of a borrower’s account activity over the past year. This ledger typically includes information about monthly mortgage payments, any late payments, and the overall status of the loan.
The purpose of a 12 month ledger is to give lenders a complete picture of how a borrower has managed their mortgage. This information can be crucial when applying for refinancing, buying another property, or when the borrower wants to prove their payment history.
For instance, if someone has consistently made their mortgage payments on time, this positive record can help them secure better loan terms in the future. Conversely, if the ledger shows late payments, it might indicate to lenders that the borrower is a higher risk.
In summary, a 12 month ledger is an important tool in the mortgage process, helping both borrowers and lenders assess financial responsibility and loan eligibility.