Mortgage Payoffs (loan, selling a home, to buy)

[Mrs. P]

I went on line to see my balance for my mortgage today.
It shows a figure then it says "this is not your payoff".

I ordered a copy of the payoff. I was wondering though, so I don't have a heart attack type surprise, is the payoff usually more or less than what the balance would show?

I have a co worker that has offered to buy my townhouse, and before I give him my price, I need to know why there would be any difference on the pay off as compared to what my mortgage company shows is balance owing.

Thanks

[SouthernBelleInUtah]

I think it's slightly more, due to early termination fee if applicable, other fees, they tell you as of the date of projected payoff (interest from now to then).

[flyingscotsman]

More often than not they don't seem to charge early term fees, what you will have is the interest makeup payment, so the most it should be is your balance +a months interest.

[jeffw]

depends on the bank, i know my last one had a lower payoff since the intrest wasnt acrued fully closing it early, interest accures by month no pay off early and payments are less. so i would expect u to be surprised to find a lower pay off.

jeff

[Mrs. P]

Thank you all sincerely. Any of the answers provided, helped me. At the most I can expect it only to be a little higher or even lower. It's been so long ago that I sold a home that I couldn't remember.
I do remember though my payoff on my mortgage ended up being less than what my balance showed, but have no idea why, it was almost 20 years ago, and things have changed. Well I keep my fingers crossed and hope I can afford to sell. I realize this is a great opportunity for me as selling a home is a little harder these days.


Mrs. P

[716-704-803]

More than likely, the number you saw was the unpaid principal balance. More often than not, Interest is paid on your mortgage one month in arrears. In short, when you pay your November monthly mortgage payment, the interest portion of that payment paid the interest that accrued on the loan in October.

Your payoff figure would likely be the sum of your principal balance and the interest currently due. If your next payment is due 12/1/08, then interest is likely due from 11/1/08 forward in addition to the unpaid principal balance of the loan.