Definition
Before closing, the seller's lender provides the exact payoff amount—the remaining balance plus accrued interest and any penalties. This number must be exact at closing to satisfy the mortgage.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Payoff includes: remaining balance, accrued interest, prepayment penalty if applicable. Current as of specific date. Required before closing. Timing critical for accuracy. Title company obtains payoff. Professional coordination prevents errors. Payoff amount in settlement statement. Satisfies lender requirements. Final document needed. Professional handling essential. Timing verification critical. Completion before closing required.
Pro Tip
Obtain mortgage payoff verification before closing. It's critical for accurate settlement.
Example
Mortgage payoff verification showed $250,000 balance, $1,200 accrued interest, $0 penalty.