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 completely pay off your debt. Your payoff amount is different from your current balance.
Your current balance might not reflect how much you actually have to pay to completely satisfy the loan. Your payoff amount also includes the payment of any interest you owe through the day you intend to pay off your loan. The payoff amount may also include other fees you have incurred and have not yet 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 a 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.
This answer previously implied that the payoff statement requirements only applied to closed-end loans secured by a consumer’s principal dwelling. On August 13, 2020, the answer was corrected to note that these requirements apply to closed-end loans secured by a consumer’s dwelling.