From the video
Why Is Your Mortgage Payoff Quote $1,700 Higher?
What the video covers
Your monthly statement shows a balance, but that is not the number that ends the loan. The payoff quote adds interest for every day until your money arrives, called per diem interest, plus any fees the servicer lists, such as a payoff statement fee or a recording fee.
On the loan in the video, $380,000 at 6.5% and ten years in, the daily interest is $57.37. Over a 30-day good-through window that adds $1,721.07. The gap follows your rate: at 3% the same 30 days is about $712.
Before you pay it off, ask your servicer for a written payoff quote, read every line on it, and make sure your money arrives by the good-through date printed on it.
Run your own numbers in the free mortgage payoff calculator →
Get The Retirement Money Blueprint, free
A 12-page guide and an Excel workbook for homeowners 50 and older. Type three numbers from your mortgage statement and it shows the month your house is paid off, then walks you through Social Security, withdrawals, property tax breaks, staying or moving, and the house and your family. It is free, and it comes to your inbox.
More from the channel
All the channel's videos and worksheets Mortgage Payoff Calculator
The four questions to answer on your own loan
Can you recast your loan, or is it FHA and cannot be recast at all? When can your PMI come off, and against which value? What will escrow do next year? Should retirement money go near the house at all? The Payoff Planner Pro answers all four on your own numbers.
See the Payoff Planner Pro →One payment of $97. Nothing renews. 30 days to change your mind.