1. What is a Mortgage Payoff?

A mortgage payoff amount is the total sum required to completely pay off your mortgage loan. It includes the remaining principal balance, any accrued interest, and often an escrow balance for property taxes and insurance.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Principal — Remaining loan balance
• Accrued Interest — Interest accumulated since last payment
• Escrow — Balance in your tax/insurance escrow account

3. Importance of Escrow in Payoff

Details: Many mortgages include escrow accounts for property taxes and insurance. When paying off your mortgage, you may receive a refund of any remaining escrow balance after final tax/insurance payments are made.

4. Using the Calculator

Tips: Enter all amounts in USD. For most accurate results, obtain current figures from your mortgage servicer. Principal and interest can typically be found on your monthly statement, while escrow balance may require a phone call to confirm.

5. Frequently Asked Questions (FAQ)

Q1: Why is my payoff amount higher than my principal balance?
A: The payoff includes accrued daily interest and may include escrow balances. Interest accrues daily on mortgages.

Q2: How often does the payoff amount change?
A: The amount changes daily due to interest accrual and any additional payments made to principal.

Q3: Will I get my escrow balance back?
A: Typically yes, after all outstanding tax/insurance payments are made, any remaining escrow balance is refunded.

Q4: Are there any additional fees in a payoff?
A: Some lenders charge a small processing fee for payoff statements or final paperwork.

Q5: How precise is this calculator?
A: This provides an estimate. For exact payoff amounts, always contact your mortgage servicer as rates may vary slightly.