Closings glossary
Payoff letter
A lender's statement of the amount required to satisfy and release a mortgage on a specific date, with a daily interest figure for any later date.
What is a payoff letter?
Quick Answer
The full definition
A lender's statement of the amount required to satisfy and release a mortgage on a specific date, with a daily interest figure for any later date.
Where does payoff letter come up in a New York City closing?
A Brooklyn payoff good through the 30th expires before an adjourned closing on the 3rd, and the updated letter adds four days of per diem interest.
What else should you read before closing?
In the glossary
- Satisfaction of mortgageThe instrument that releases a paid mortgage from the record. Until it is recorded, the old mortgage still appears as a lien against the property.
- Clear to closeThe point at which lender conditions are satisfied and the transaction can be scheduled and funded. Title clearance and payoff figures usually have...
- Closing statementThe itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer m...
- CEMA (Consolidation, Extension and Modification Agreement)An agreement in which an existing mortgage is assigned and consolidated with new financing rather than being satisfied and re-recorded. It requires...
- LienA claim against property securing payment of a debt. Liens rank by priority, and closing normally means paying or releasing every one ahead of the ...
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