A mortgage payoff statement is a document that provides the total amount you owe on your mortgage loan, including principal, interest, and any fees or costs. It is different from your current balance because it includes interest owed until the payoff date and any fees due.
Key Facts
- Timeframe: Generally, you should receive your mortgage payoff statement within seven business days of your request.
- Request Process: To obtain a mortgage payoff statement, you’ll need to contact your lender and let them know you want the information. The request process may involve signing in to an online account, calling a helpline, sending a formal letter, or filling out a form provided by the lender.
- Required Information: When requesting a payoff statement, you’ll likely need to provide personal information such as your name, signature, contact information, account number, property address, and the desired effective date of the payoff.
- Contents of a Payoff Statement: Most mortgage payoff statements contain similar information regardless of the lender. They typically include the expiration date of the payoff amount, where to send the final payment, who to make the check out to, whether a cashier’s check is necessary, charges to include with the payment, and an adjusted amount in case of early or late payment.
- Fees: It’s important to review the payoff statement for any fees, such as administrative, recording, or delivery fees, that may be included.
- Legal Requirements: Under federal law, the servicer must generally send you a payoff statement within seven business days of your request, with some exceptions.
You may need a mortgage payoff statement if you are planning to refinance your mortgage, pay off your mortgage early, or work with a debt relief company.
To obtain a mortgage payoff statement, you’ll need to contact your lender and let them know you want the information. The request process may involve signing in to an online account, calling a helpline, sending a formal letter, or filling out a form provided by the lender.
When requesting a payoff statement, you’ll likely need to provide personal information such as your name, signature, contact information, account number, property address, and the desired effective date of the payoff.
Once you have submitted your request, the lender will typically send you the payoff statement within seven business days. However, there may be some exceptions to this timeframe. For example, if the lender is experiencing a high volume of requests, it may take longer to process your request.
Contents of a Mortgage Payoff Statement
Most mortgage payoff statements contain similar information regardless of the lender. They typically include the following:
- The payoff amount: This is the total amount you owe on your mortgage loan, including principal, interest, and any fees or costs.
- The expiration date: This is the date through which the payoff amount is valid. If you pay off your loan after the expiration date, you may be charged additional fees.
- Payment information: This section will tell you who to make the final check out to and where to mail it.
- Additional charges: You will be alerted to any additional fees and charges that you’ll need to include with your payment.
Fees
It’s important to review the payoff statement for any fees, such as administrative, recording, or delivery fees, that may be included. These fees can vary depending on the lender and the type of loan you have.
Legal Requirements
Under federal law, the servicer must generally send you a payoff statement within seven business days of your request, with some exceptions. These exceptions include:
- The loan is in bankruptcy or foreclosure.
- The loan is a reverse mortgage.
- There was a natural disaster or other similar circumstances.
- The servicer specified reasonable requirements for making the payoff request (such as requiring you to send the request to a specific mailing address, email address, or fax number), and you didn’t follow these requirements.
If the servicer does not send you a payoff statement within the required timeframe, you can send them a written complaint (called a “notice of error”). The servicer must respond to your notice of error within seven days, excluding legal public holidays, Saturdays, and Sundays.
Sources
- What Is a Mortgage Payoff Statement or Letter? | SoFi
- Mortgage Payoff Statement, Defined | Rocket Mortgage
- How To Deal With a Lender That Doesn’t Provide a Payoff Quote | Nolo
FAQs
How long does it take to get a mortgage payoff statement?
Generally, you should receive your mortgage payoff statement within seven business days of your request.
What information do I need to provide to request a mortgage payoff statement?
When requesting a payoff statement, you’ll likely need to provide personal information such as your name, signature, contact information, account number, property address, and the desired effective date of the payoff.
What is included in a mortgage payoff statement?
Most mortgage payoff statements contain similar information regardless of the lender. They typically include the expiration date of the payoff amount, where to send the final payment, who to make the check out to, whether a cashier’s check is necessary, charges to include with the payment, and an adjusted amount in case of early or late payment.
Are there any fees associated with getting a mortgage payoff statement?
It’s important to review the payoff statement for any fees, such as administrative, recording, or delivery fees, that may be included.
What should I do if I don’t receive my mortgage payoff statement within seven business days?
If the servicer does not send you a payoff statement within the required timeframe, you can send them a written complaint (called a “notice of error”). The servicer must respond to your notice of error within seven days, excluding legal public holidays, Saturdays, and Sundays.
Can I pay off my mortgage without a payoff statement?
No, you cannot pay off your mortgage without a payoff statement. The payoff statement provides the total amount you owe on your mortgage loan, including principal, interest, and any fees or costs. Paying off your mortgage without a payoff statement could result in you overpaying or underpaying your loan.
What is the difference between a mortgage payoff statement and a mortgage statement?
A mortgage payoff statement is a one-time document that provides the total amount you owe on your mortgage loan, including principal, interest, and any fees or costs. A mortgage statement is a monthly statement that shows your current balance, recent transactions, and payment history.
Can I request a mortgage payoff statement online?
Yes, many lenders allow you to request a mortgage payoff statement online. You can typically find a link to request a payoff statement on your lender’s website.