Obtaining a Mortgage Payoff: Steps and Information

Obtaining a mortgage payoff statement is an important step if you're planning to pay off your mortgage in full or refinance your existing loan. Here are the steps to obtain a mortgage payoff statement:

1. Contact Your Lender or Servicer:

• Begin by reaching out to your mortgage lender or loan servicer. You can typically find their contact information on your monthly mortgage statement or on their website.

2. Request a Mortgage Payoff Statement:

• When you contact your lender or servicer, let them know that you need a mortgage payoff statement. You may need to provide information like your loan account number, property address, and your contact details.

3. Verify Payment Instructions:

• While requesting the payoff statement, verify the instructions for making the final payment. This includes the total payoff amount and any specific instructions for wiring funds, sending a check, or using an online payment portal.

4. Pay Any Additional Fees:

• In some cases, there may be additional fees associated with obtaining a mortgage payoff statement. Be prepared to pay these fees if applicable.

5. Review the Payoff Statement:

• Once you receive the payoff statement, carefully review it. It should include:
  • The total amount needed to pay off the mortgage, including the loan balance, interest, and any applicable fees.
  • The date until which the payoff amount is valid (since interest accrues daily, this date is important).
  • Any specific instructions for submitting the payment, such as the payment address or wiring details.
  • Contact information for the lender or servicer in case you have questions.

6. Plan the Payment:

• Ensure you make the payment on or before the specified date to avoid any additional interest charges. If you're refinancing, coordinate the payment with your new lender.

7. Keep Records:

• Maintain copies of all correspondence, including the payoff statement and payment confirmation, for your records.

8. Verify That the Loan is Paid Off:

• After making the payment, follow up with your lender or servicer to confirm that the loan has been paid off in full and that you have no outstanding obligations.

9. Update Records:

• Ensure that your lender updates its records to reflect that the mortgage has been paid in full. This may involve obtaining a release of the mortgage lien on your property.

10. Keep Documentation:- Safeguard all documents related to the mortgage payoff, including the payoff statement, proof of payment, and any lien releases. These documents are essential for your property records.

Remember that the process of obtaining a mortgage payoff statement may vary slightly depending on your lender or loan servicer. It's essential to communicate clearly with them and follow their specific instructions to ensure a smooth payoff process. Additionally, if you're refinancing or selling your home, coordinate the mortgage payoff with your new lender or the buyer's attorney to ensure a seamless transition.