- Bargaineering - http://www.bargaineering.com/articles -

Mortgage Lender Payoff Statement

Five Cent Nickel has started the countdown [3] until the sale of his current house is complete and there is one important tip (the only one I know because I’ve never sold but I did close out a second mortgage), which his agent probably already told him, that he needs to do. When you’re going to pay off a mortgage, request from your mortgage lender an official payoff statement.

The payoff statement is how much you owe at the end of the month including the interest accrued in that month. It is required as a part of closing out your loan from most lenders. If you pay off the statement before the end of the month, whatever interest you overpaid will be refunded to you. Requesting a payoff statement typically comes with a nominal fee (doesn’t everything?).