Real estate title glossary
What is payoff statement?
Also called: payoff letter, payoff quote
Definition
A payoff statement is the lender's written figure for the exact amount needed to pay a loan in full as of a given date, including interest and fees.
Closings use payoff statements to retire existing mortgages and liens from the sale proceeds. Federal rules require servicers to provide one within a set time after a borrower's written request.
How it shows up in a title search
The recorded mortgage shows only the original amount. A title search shows which loans are open; the payoff statement says what is owed on each.
Guides that go deeper
- Is That Mortgage Actually Open? Satisfactions, Assignments and CEMAsA recorded mortgage never leaves the record. Only a satisfaction closes it, an assignment does not, and a CEMA hides old mortgages inside a new one.
- Estimated Closing Costs for Seller: What You Pay and How Taxes Differ by StateEstimated closing costs for seller: loan payoff, transfer taxes, title and recording fees. Florida taxes deeds at 70 cents per $100; NY and PA compared.
- Satisfaction of Mortgage: What It Is, Deadlines by State, and How to Confirm OneWhat a satisfaction of mortgage is, how long a lender has to record one in Florida, North Carolina, Texas and Arizona, and how to confirm it is in the land records.
Related terms
Book and pageReal estate transfer taxAssignment of mortgageSubordination agreementMERS (Mortgage Electronic Registration Systems)UCC fixture filingAll terms
Source: CFPB, Regulation Z 1026.36(c)(3) payoff statements. Plain-English summary of general US usage; state law varies, and this is not legal advice.