BiggerPockets

Why is your payoff higher than the amount on your mortgage statement?

Friday, May 29

A payoff is not the same as the mortgage balance.  For a payoff, you add extra interest to the loan balance to get a payoff amount.  I always got this question when people look over their loan application on a refinance.

I wrote a post on how to calculate a payoff amount before you have an official payoff statement.  If the loan officer or broker did not add any extra interest to the balance on your refinance application, they will have to modify your new loan amount.  

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