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.