What Is a Payoff Statement?

Short answer

A payoff statement is the servicer's written figure for the exact amount needed to pay your mortgage off in full on a specific date, and under Regulation Z, 12 CFR 1026.36(c)(3), the servicer must send it within a reasonable time, and in no case more than 7 business days after your request (rule in effect as of November 2026). The payoff is almost always higher than the balance on your monthly statement because it adds interest through the payoff day and any unpaid fees.

Definition

A dated statement from the creditor or servicer showing the total amount required to satisfy the loan on a stated date, usually broken into principal, interest, fees and a per-diem (daily) interest figure for each day after that date.

Worked example

Example only: your title company orders a payoff good through June 10. The letter shows a total and per-diem interest of $45 a day. The closing moves to June 14. The title company adds 4 days x $45 = $180 to the payoff, or orders an updated letter, so the old loan is fully paid and the mortgage can be released.

What's on a payoff statement

The CFPB explains that your payoff amount is different from your current balance. It includes interest due through the day you intend to pay off the loan, and may include fees you were charged and have not paid. A typical letter shows:

• Unpaid principal balance.
• Interest from the last paid installment through the good-through date.
• Per-diem interest for each extra day.
• Late charges, recording or other fees, and any prepayment penalty if your note has one.
• Wiring instructions and the escrow balance, which is refunded to you after payoff, not deducted.

When the 7-business-day rule bends

Regulation Z lets the servicer take a reasonable time, instead of 7 business days, when the loan is in bankruptcy or foreclosure, is a reverse mortgage or shared appreciation mortgage, or is affected by a natural disaster or similar event. After a hurricane in South Florida, expect slower payoffs and plan closing dates with extra room.

Who asks matters too. You, or someone acting for you such as your title company or attorney, can request it. Under F.S. 701.04, a third party must show authority and the servicer notifies you.

In South Florida

Florida has its own rule on top of the federal one. F.S. 701.04 says the mortgagee or servicer must send an estoppel letter within 10 days after a written request from the borrower, the record owner or an authorized agent, showing the unpaid balance itemized by principal, interest and other charges, plus the per-day interest. People who rely on that letter can count on it, and after payment the lender has 60 days to record the release of the mortgage (as of November 2026). In practice, the federal 7-business-day rule and the Florida 10-day rule both apply, so title companies request payoffs as early as possible.