Mortgages Analyzed
Mortgages Analyzed
Mortgages Analyzed
 
Payoff Amount

What is Payoff Amount?

Definition
Payoff amount is the amount required to pay off the entire loan obligation as of a particular date. It includes amounts such as unpaid principal balance, accrued interest, accrued fees, early termination fee, and account closing fee.
What It Means
Payoff Amount is calculated for a particular date. If the borrower makes the payment that equals the payoff amount on that date then the loan account can be closed and the lien is released. Payoff amount includes the outstanding principal, accrued interest, and all fees associated with the loan and payment. Therefore, it may include fees such as prepayment fees, late fees, and reconveyance fees.
Category
Finance
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Related Terms

  • Full Prepayment: Full prepayment refers to the payment made prior to the end of the loan term that will completely pay off the entire loan obligation.... Read More
  • Partial Prepayment: Partial prepayment refers to the amounts paid over and above the required monthly payment that are applied towards principal balance, but are not larg... Read More
  • Prepayment: Prepayment refers to the amounts paid over and above the required monthly payment that are applied towards principal balance.... Read More
  • Loan Term: Loan term is the time period within which the borrower has to repay the loan amount and interest and satisfy all the terms of the agreement.... Read More
  • Principal Amount: Principal Amount is the initial and subsequent loan amounts received by the borrower.... Read More
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