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Mortgages

What is a payoff amount? Is my payoff amount the same as my current balance?

Your payoff amount is how much you will actually have to pay to satisfy the terms of your mortgage loan and pay off your debt. Your payoff amount is different from your current balance, which is the amount you owe as of the date of your statement. Your payoff amount also includes the payment of any interest you owe through the day you intend to pay off your loan, and it may include other fees you have incurred and not paid.

If you are paying off your loan early, you may have to pay a pre-payment penalty. If you are considering paying off your mortgage, you can request a payoff amount from your lender or servicer. If your loan is a “closed-end” loan secured by your “principal dwelling,” once you request a payoff amount servicers must provide you with an accurate statement of the total amount that would be required to satisfy your obligation in full as of a specified date. You can have only one principal dwelling at a time, so this does not include a vacation or other second home.

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