2007-10-09 10:22:49 · 8 answers · asked by kmatyja 2 in Business & Finance ➔ Personal Finance
It depends.
It's Principal plus Interest... but sometimes you can have a negative interest balance due to paying ahead on an amortized mortgage(so most of these answer are not correct)...
Also, sometimes they discount the payoff by the Escrow balance(which is technically not a lower payoff, but still).
Most of the time, it is higher though.
2007-10-09 17:29:42 · answer #1 · answered by Nep 6 · 0⤊ 0⤋
Your payoff is your principle balance PLUS the interest that accrued between you last payment and the pay off date. It should always be more than the principle balance by less then the amount of a payment.
Someone said most mortgage companies will charge $50, to calculate your pay off. That is NOT true. It takes about 5 seconds to do the math. Unless this fee was spelled out in your original note, it is ILLEGAL to charge anything to compute the payoff.
2007-10-09 12:04:31 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
When you pay off... your are paying the principal balance plus interest from the 1st of the month plus a charge for reconvenience. So It is always higher. You don't get credit for the money in your trust fund. Your mortgage company will send you that money separately in about six weeks or more.
2007-10-09 10:56:37 · answer #3 · answered by John R 3 · 0⤊ 2⤋
It is always higher because they will pro-rate your interest for that month and add a lot of fees. Most mortgage companies will now charge you 50 dollars just to calculate your pay off. That is why it is best to just let the title company you are going use do it for you.
2007-10-09 10:27:37 · answer #4 · answered by Anonymous · 0⤊ 2⤋
Mine was higher, but I paid off my house last year with my final payment after 30 long years.
I will never take out another mortgage on my house for anything.
30 years payments was long enough.
2007-10-09 10:26:42 · answer #5 · answered by Anonymous · 1⤊ 0⤋
always higher you butt.. principle is what you bought it for, but you have tax and interest.. if you overpay your mortgage it will fall into the prince.. you'll save alot of cash this way. trust
2007-10-09 10:26:41 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Way higher
2007-10-09 10:25:26 · answer #7 · answered by Kellee V 1 · 1⤊ 2⤋
it's your principal balance plus interest....so it will be higher....
2007-10-09 10:25:09 · answer #8 · answered by Anonymous · 1⤊ 1⤋