Payoff Statement

He’s called every hotline. He’s visited every website. He’s gone to every carnival. And now, Marty has traveled halfway around the world just to meet the world’s most powerful clairvoyant: Madame LeKismette. As he looks deep into her eyes, he tells her he only has one question: how much money would he need, right now, today, to pay off the remainder of his mortgage? He’s just come into some money and he’d really love to eliminate that big monthly expense. “Silly Marty,” Madame LeKismette says. “You did not need to come all this way. All you had to do was ask your mortgage lender for a payoff statement.”

As always, Madame LeKismette is right. If we’re planning on pulling a Marty and paying off our own mortgage or other type of loan, all we have to do is contact our lender and ask for a payoff statement. A “payoff statement” is exactly what it sounds like: it’s a statement that tells us how much money is required to pay off a loan in full at that moment. It’ll also tell us if we have to pay a fee to pay it off early, or if we’ll get any sort of rebate on the interest we’ve already paid.