Where every dollar of a mortgage payment goes
Payoff amount vs balance
In one paragraph
Your statement shows the principal balance, but the payoff amount adds interest that has built up since the last payment, because interest is paid in arrears. It can also include fees owed. Always use a written payoff statement good through a specific date.
Last reviewed against the primary sources listed below.
Request a payoff statement
- Name the payoff date.
- Ask for per-day interest after that date.
- Confirm where to send funds.
Common questions about interest
Why is my payoff more than my balance?
It adds interest accrued since your last payment and any fees owed.
How do I get a payoff statement?
Ask your servicer in writing; it must respond promptly.