Payoff Statement


DEFINITION of 'Payoff Statement '

A statement prepared by a lender showing the remaining terms on a mortgage or other loan. The payoff statement shows the remaining loan balance and number of payments and the rate of interest. It also states the amount of interest that will be rebated due to prepayment by the borrower.

Also referred to as "letters of demand."

BREAKING DOWN 'Payoff Statement '

Payoff statements are prepared whenever a borrower considers paying off a loan early. Although payoff statements can apply to any type of loan, they are most commonly prepared for mortgages.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Prepayment

    The satisfaction of a debt or installment payment before its ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Loan

    The act of giving money, property or other material goods to ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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