What is a Mortgage Payoff Statement?
If you own a house or are in the process of buying one, chances are you needed to take out a mortgage, a fancy word for borrowing money from a bank to purchase a property. Various factors can contribute to the amount you can borrow, the cost of your monthly payments, and the percentage of interest you must pay. But no matter the price tag, every homeowner looks forward to the day they own 100% of their home and owe no more money.
You may want to better organize your finances if you have multiple debts. Regardless of your financial goals, you should have a clear picture of the amount you still owe on your loan and any other charges to your account. Although an early payoff of your mortgage may seem like an unattainable fantasy, in this scenario, a mortgage payoff statement is the best way to view an overall layout of what you owe.
What is a Payoff Statement?
A payoff statement is a document detailing the specific amount of money needed to pay off your mortgage loan in full. Not only do these number include your outstanding balance, but they provide an interest you owe or potential fees your lender might charge to your account.
The specific amount of outstanding interest will change based on the terms of your loan, so you can’t simply guess how much you will owe. Instead of driving yourself crazy trying to guess and potentially failing to pay the right amount, it’s a good idea to rely on a payoff statement.
Do you know your upcoming monthly interest payments? If you need assistance, True Concept Title can order your payoff statement to have it delivered to your home. Call today to learn more about our title and escrow services – (813)-263-7168.
When Do You Need a Mortgage Payoff Statement?
There are several circumstances where you may need a payoff statement.
- You want to know the exact amount needed to pay off your home
- You want to refinance your loan to change the terms, lower your monthly payment, or consolidate debt
- You want to pay off your mortgage early
If you decide to pay off your loan, you should also request information regarding your escrow balance. This is essentially a fund you pay into monthly to cover future homeowners’ insurance and property tax. You may be able to receive some of this balance back after covering your mortgage.
If you want to pay off your mortgage or refinance your property to save money, you will need to order a mortgage payoff statement.
How are Payoff Statements Created?
To receive your payoff statement, contact your lender or contact True Concept Title, and we’ll do it for you! You’ll need to provide personal information such as your name, contact information, account number, address, and sometimes why you’re choosing an early payoff.
In the letter you receive, you will discover the following information:
- The expiration date of the payoff amount
- Interest due
- Loan balance
- Total amount owed
- Where to send the final payment
- Who to write the check to
- Whether a cashier’s check is required
- Charges required along with your payment
- Adjusted amount in case you pay after or before the official payoff date
Get Ahead of Payments with True Concept Title
There are a lot of factors and responsibilities to consider when purchasing and owning a home, the most weighted being your mortgage payments. If you’re not careful and get behind on payments, is easy to quickly fall behind and financially burden yourself. Financial struggles can hinder your physical and emotional wellbeing, which is why it’s important to stay organized.
If you maintain structure and consistency in your financials, you may eventually be able to help yourself by refinancing or paying off your mortgage. If you are interested in ordering a payoff state, True Concept Title can keep you ahead of any obstacles.
Our creative solutions, attention to detail, and dedicated customer service can help you manage your homebuying process and homeownership. To learn more about how we can help, contact our team.
