Why Is My Payoff Higher than My Newest Statement I Received From My Lender?
Mortgage payments are made in arrears, meaning that the month in which you pay your mortgage actually covers the interest from the prior month ( i.e. October payment covers September’s interest. Because you will not be making the payment for the month following the closing (i.e. October closing, you will not make November payment), the interest from the 1st of the month through the closing date must be added to the principal balance to calculate the “payoff”. Also, most mortgage companies charge between $10-75 to provide the payoff information, which further increases the payoff amount.