Definition
The payoff amount is the total sum of money required to completely pay off a mortgage. It includes the remaining principal, any accrued interest, and other fees.
Understanding Your Payoff Amount
When you want to fully pay off your mortgage, you'll need the payoff amount. It includes the remaining loan balance, interest up to the payoff date, and any fees. In simple terms, the payoff amount is what you need to pay to close the loan. Example: If you owe $100,000 and interest is $500, your payoff amount might be $100,500. It's not just what's listed as your current balance. Many think the payoff amount is the same as the principal balance, but it's not. The payoff amount accounts for everything needed to settle the loan, ensuring the mortgage is paid in full.
