Payoff Statements: What They Are and How to Get One
A payoff statement shows the exact amount you need to completely pay off a loan, including all interest and fees. You can request one from your loan servicer at any time without committing to early repayment. People commonly need payoff statements when refinancing, consolidating debt, or considering early loan payoff.
Get Payment PlanWondering how much you actually need to pay off a loan? Interest and fees make it hard to calculate the true amount.
You need a payoff statement to get an accurate number. A payoff statement tells you exactly what you owe to close out your loan completely.
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Lower Your Payments NowWhat Is a Payoff Statement?
A payoff statement is a document from your lender. It shows the exact amount needed to completely pay off your loan.
Lenders create these statements when you request them. You can get one for mortgages, car loans, student loans, and personal loans.
Every payoff statement includes these key details:
- Your account number
- The full payoff amount, including accrued interest, fees, and any prepayment penalties
- A “good through” date showing when the payoff amount expires
Some statements also show your interest rate, potential interest rebates, and how much you’ll save by paying early.
The payoff amount is only valid through the listed date. After that date, you’ll need a new statement. Interest continues to accrue, and new charges may apply.
Payoff Statements vs. Monthly Statements
These two documents serve different purposes. A payoff statement shows what you need to pay right now to close your loan entirely.
Monthly statements only show your current balance and next payment due. They don’t include future interest or special fees.
That’s why your payoff amount is usually higher than your monthly statement balance.
How to Get a Payoff Statement
You can request a payoff statement anytime from your loan servicer. Your servicer handles your payments and sends billing statements.
For a mortgage, contact your mortgage servicer directly. Requesting a payoff statement doesn’t commit you to anything.
Many online lenders display your payoff amount in your account dashboard. Traditional lenders typically mail a formal payoff letter after you request it.
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When You Need a Payoff Statement
People request payoff statements for several common reasons. You’ll need one when selling your home, refinancing, or paying off a loan early.
Mortgage Refinancing
Refinancing your mortgage means replacing your current loan with a new one. Your new lender needs to know exactly what you owe.
They’ll request a payoff statement from your current mortgage servicer. The statement helps them determine your refinance loan amount.
Debt Consolidation Loans
Debt consolidation combines multiple debts into one single loan. Your new lender will require payoff statements from all your current creditors.
These statements show exactly how much money the new lender needs to pay off your existing debts.
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Debt Relief Companies
Debt relief companies negotiate with your creditors to reduce what you owe. They need payoff statements to see your current balances.
These statements help them negotiate better settlement terms on your behalf.
Collection Actions
When a creditor takes collection action against you, they typically send a payoff statement. The statement includes your account information and payment requirements.
Paying the listed amount can stop further collection actions from moving forward.
Liens
Creditors may place liens on valuable property like cars or homes. A payoff statement shows what you must pay to remove the lien.
The statement includes a notification about the legal claim on your property. Homeowners facing foreclosure often receive payoff statements with lien notices.
Key Things to Remember
Payoff statements differ from monthly statements in important ways. They show the exact amount needed to completely satisfy your loan.
You can request a payoff statement from any loan servicer at any time. Requesting one doesn’t obligate you to pay off the loan early.
Use payoff statements as a reference tool. They help you make informed decisions about refinancing, consolidating debt, or early repayment.
The statement is only valid through the listed date. After that, interest continues to build and the amount changes.