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A payoff letter is typically requested by a borrower from its lender in connection with the repayment of the borrowers outstanding loans to the lender under a loan agreement and termination of the loan agreement and related security and guaranties.
Youll need to request a 10-day payoff letter from your current loan servicer, which you may be able to do online. Not all lenders offer an online request option, however, so you may need to call or email your loan servicer directly to get this information.
Thats because the difference likely is because of the way the interest of your loan is calculated. Basically, your balance is what you currently owe, and your payoff is what you owe plus interest that accrues from the statement date and a specific payoff date.
A payoff quote shows the remaining balance on your mortgage loan, which includes your outstanding principal balance, accrued interest, late charges/fees and any other amounts. Youll need to request your free payoff quote as you think about paying off your mortgage.
Include all relevant information in the payoff letter, including: Include the name of the loan or mortgage holder. Include the loan or mortgage number. Include the payment amount. Include the date you plan to make the payment. Include your name and address. Include your contact information.
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When the new lender sends the final payoff check to the old lender, the amount sent is known as a 10-day loan payoff. This name refers to the fact that it often takes 10 days for the refinancing to go through completely.
Essentially, a loan payoff letter is a representation by the existing lender regarding the outstanding amounts owed on the loan, including principal, interest, fees and other charges required to pay the loan in full and release any collateral.
Typically, a 10-day payoff letter includes: The 10-day payoff date and payoff quote for your loan. Your loan account number(s) Individual loans and their payoff amounts (if youre refinancing multiple loans) Instructions on how to pay off your current loan servicer.

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