What is a mortgage payoff statement, and how do you get one?
The number that actually closes out your loan is rarely the balance on your monthly statement. Here's how to get the real one.
No obligation. No pressure. Takes about 2 minutes.
The short answer
A payoff statement shows the exact amount needed to pay off your mortgage in full as of a specific date. It's often higher than the balance on your monthly statement because it adds interest through the payoff date and any fees you haven't paid. Ask your servicer in writing; for a loan secured by your home, federal rules generally give them no more than seven business days to send it.
Step by step
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1
Ask in writing
Send your servicer a written request using the channel it lists for payoff requests. Someone acting for you, such as the company handling your closing, can ask too.
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2
Pick a good-through date
Interest keeps running until the day the loan is paid, so every payoff is tied to a date. Use your expected closing date, and get an update if closing moves.
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3
Know the deadline
Federal rules require an accurate payoff statement within a reasonable time, and no more than seven business days after a written request. Loans in bankruptcy or foreclosure, reverse mortgages and loans hit by a natural disaster get a reasonable time instead.
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4
Read every line
Look for interest through the payoff date, late charges, other unpaid fees and any prepayment penalty. Ask the servicer about anything you don't recognize.
Sources: 12 CFR 1026.36(c)(3) (payoff statements) ยท CFPB: What is a payoff amount and is it the same as my current balance?
This page explains the general federal rule. It isn't legal advice. Your loan documents and servicer's procedures may differ, so check with your servicer.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
Once you have your payoff, we can show you what a cash sale and a listing would each leave you after it's paid.
Frequently asked questions
Is the payoff the same as my loan balance?
No. Your monthly statement's balance usually leaves out interest through the payoff date and unpaid fees, so the payoff is often higher.
How long does the servicer have to send it?
For a loan secured by your home, no more than seven business days after your written request in most cases. Loans in bankruptcy or foreclosure and reverse mortgages get a reasonable time instead.
Can someone else request it for me?
Yes. Federal rules let a person acting on your behalf request the payoff statement.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.