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Understanding Mortgage Payoff: How to Request It and Why It Matters

[Homeowners Corner]

Author

Mateo Garcia
July 14, 2023

If you're a homeowner looking to sell your property, one important piece of information you'll need to know is your mortgage payoff amount. This is the amount of money you owe your lender to completely pay off your mortgage loan. It's important to know that this amount may be different than the mortgage balance shown on your monthly statement.
To request a mortgage payoff amount, you'll need to contact your lender and request a payoff statement. This statement will provide you with the exact amount you owe to completely pay off your mortgage loan, including any interest, fees, and charges that have accrued since your last payment. It's important to note that this amount may change depending on when you plan to close on the sale of your home.

It's also important to know that there may be fees associated with obtaining a payoff statement from your lender. These fees can vary depending on the lender and the state in which you live. Be sure to ask your lender about any fees before requesting a payoff statement.

Once you have your mortgage payoff amount, you can use it to calculate your net proceeds from the sale of your home. Net proceeds are the amount of money you'll receive from the sale of your home after all expenses and fees have been paid, including your mortgage payoff amount, any other liens on the property, title company fees, and other fees associated with selling your home.

To calculate your net proceeds, you'll need to subtract your mortgage payoff amount, any other liens on the property, and all other expenses and fees from the sale price of your home. The remaining amount is your net proceeds.

In conclusion, knowing your mortgage payoff amount is an important step in selling your home. Requesting a payoff statement from your lender can give you an accurate picture of the amount you'll need to pay off your mortgage loan, and can help you calculate your net proceeds from the sale of your home. If you're unsure about the process, don't hesitate to reach out to a real estate attorney or professional for guidance.

My Home, My Sale