Payoff

The payoff amount is the real amount you will need to pay to comply with the conditions of the mortgage loan and fully settle the debt. The payoff amount and the current balance are different.

It’s possible that the amount you actually need to pay to pay off the loan in full is not reflected in the present balance. Any interest you owe up to the day you plan to pay back the loan is also included in the repayment amount. Other costs you have incurred but haven’t yet paid may also be included in the payoff amount.

You could have to pay a pre-payment penalty if you repay the loan early. If you’re thinking about paying off the mortgage, you can ask the lender or servicer for a payment amount. If the loan is a “closed-end” loan secured by a home, servicers are expected to give you an accurate account of the total amount needed to pay off the debt as of a certain date after you request a payoff amount.