U.S. Mortgage Index

Payoff statement

Also called Payoff quote

Definition

A payoff statement is the statement of the amount needed to pay the mortgage in full on a chosen date. Official consumer material discusses this as the payoff amount. It is not the current balance on a mortgage statement.

In plain English

The balance on a monthly statement is not always the amount needed to end the loan tomorrow. Interest continues through the payoff date, and other fees may be included. The document that states that full amount is the payoff statement. A payoff quote is another name for the same request.

Technical definition

CFPB’s key-terms heading for payoff amount is PRIMARY. It states that the payoff amount differs from the current balance and includes interest through the intended payoff date.

Why it matters

Refinance and sale closings fail when someone uses the statement balance as a payoff. The payoff statement is the document that answers the payoff question.

Sources reviewed