Your statement shows the balance. The payment that clears the loan adds interest for every day since your last due date. The page prices that check, to the cent, for any month you pick, and shows what each day of waiting costs.
The check shrinks a little every month, because each payment pays off some principal. Look at what you pay along the way to make it shrink.
| Pay off in | The check | Interest meanwhile | Principal meanwhile |
|---|
One honest note: paying off the loan ends principal and interest only. Property taxes and insurance never stop, and your escrow refund arrives separately after the account closes.
Step 3
This page estimates the check. Your servicer’s payoff statement is the figure you send.
The link holds your loan and your payoff date, so a bookmark keeps them. The reminder is a calendar file your device makes; nothing is sent.
The check, worked by hand, and the proof that daily interest matches your schedule.
Three things to know before you ask for the number.
Dollar figures use the example: a $400,000 loan at 6.5% over 30 years, one year of payments made, wire landing on the 15th. Run your own numbers above.
Mortgage interest is paid in arrears: the payment due on the 1st pays last month’s interest. So the moment a statement prints, new interest is already accruing behind it. On the example loan the balance says $395,529.10, but a wire landing on the 15th must carry 14 more days at $70.44 a day. The real check is $396,515.26. Not a fee, not a penalty. Just interest, counted daily, the way your servicer counts it.
The per-diem clock starts the day after your payment is due. A wire that lands on the 2nd carries one day of interest: $70.44 on the example loan. The same wire on the 28th carries 27 days. That gap is $1,831.44, and it buys you nothing. When you schedule the payoff, you choose how many days ride on the check. Choose few. It is the easiest money on this whole site.
The payoff amount is the whole prize, but the math never demands all of it. On the example loan, a single $1,000 of extra principal sent this month deletes $5,488 of scheduled interest over the life of the loan. Five and a half times the money, earned by mail. The payoff calculator prices any amount you can actually spare, monthly or one-time, against your real schedule.
Each answer below uses your loan and what you pay now. Open a tool to change the rest; your numbers carry over.
Payoff amountYou are here
When does the loan end now?
Try any extra amount, one-time payments or bi-weekly, and watch the date move.
Open the payoff calculatorSee every payment?
Every payment, split into interest and principal, with the rows an extra amount deletes.
Open the scheduleDebt-free in 20 years?
Or pay $61,225 once, today. Any other month works too.
Pick a dateDebt-free by age 65?
This line uses an example birthday, Jun 1985. The tool uses yours.
Price it in birthdaysInvest the $200 instead?
Assumes 7% a year after tax, to Jul 2056. Paying extra earns a guaranteed 6.5%; the 7% is not guaranteed.
Race the two roadsRecast after a $50,000 payment?
The new payment is $2,208.67. Keep paying $2,528.27 instead and the loan ends in May 2048.
See both roadsPay half every 2 weeks?
The loan ends 5 yrs 10 mos sooner. 26 half payments a year equal 13 full payments.
Run the true calendarRefinance at 5.5%?
The usual formula says 25. This line uses an example offer: 5.5% and $6,000 in costs, rolled in, a year from now.
Price an offerWhen can PMI stop?
Without a request it stops at payment #102. This line uses an example home value of $450,000.
Find both datesBecause mortgage interest is paid in arrears. Each payment covers the month behind it, so on any day between payments there is interest that has accrued but not yet been billed. The payoff must include it, counted per day from your last due date to the day the money lands. That per-diem is the whole gap. There is no prepayment fee hiding in it on a standard loan.
No, and you should always order the official one before wiring. This page prices the principal-and-interest math, which is nearly all of the number. The official statement adds interest through your exact funding date, any recording or statement fees, and a good-through date. It is the only document your servicer is bound by. Use this page to understand the quote and pick your date; use the letter to write the check.
The quote already includes per-diem interest up to that date. If your money arrives on or before it, the quote clears the loan. If the wire slips past it, the payoff comes up short by the extra days of interest, the loan stays technically open, and you get a bill for the shortfall. Schedule the wire with margin, and if the closing moves, order a fresh quote.
It closes, and the servicer refunds whatever is in it, usually within a few weeks of the payoff. The refund is separate money; it is not subtracted from the payoff amount. Remember what the escrow was doing, though: from now on you pay property taxes and homeowners insurance directly. Put those on a calendar the same day the refund arrives.
The title or closing company will order the official payoff quote for you and pay the loan from the sale proceeds at closing. This page is how you check their work before you sit down: the balance, the per-diem, and the check size for your closing month, so the payoff line on the settlement statement is a number you already expected instead of a surprise.
To the cent, for the loan as entered, on the standard 365-day count. The page proves its per-diem live: multiplied across the average month it reproduces the next interest line of your own schedule exactly. One honest caveat: a few servicers count interest on a 360-day year, which shifts the per-diem by pennies. The official statement settles the last few dollars; the shape of the number comes from here.