Payoff

In order to determine exactly how much you owe on your current mortgage, you must order a Payoff from your current mortgage company. The payoff will include all principal, interest, fees and finance charges due for a specific date. The payoff amount is an important figure to know when you are refinancing your home loan, and can be ordered by one of our mortgage professionals for you.

Your mortgage broker will make sure your payoff statement is ordered at the right time during the refinancing process. Many banks offer an automated touch tone system that charges the customers account with a fee to request the payoff. Other banks require a written authorization to be mailed to them before any payoff information is released.

It is common for the payoff to be ordered right away. Depending on the servicing company or banking institution they may have a standard turn around time to generate the payoff statement.

Many lenders will send a copy of the payoff to the mortgage company that is requesting the payoff and also to the customer that the payoff is being ordered for. This will notify the customer that a payoff has been ordered on their behalf and it will also provide them with a copy of the payoff so that they can review it and so they can better understand the figures.

If you have an escrow account where your taxes and/or insurance is paid by your lender, your payoff will also reflect this account and adjust for any money you may have on deposit in this account.

To avoid closing issues, be sure to provide your mortgage professional with your most recent mortgage statement. A copy of your mortgage note is helpful to determine if a prepayment penalty will be calculated in your payoff.

» DISCLAIMER: The information contained in this article on 'Payoff' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.