The most common refinance question: Why is the payoff so high?
Questions about the payoff statement, and why it is so high, are the #1 source of misunderstanding about the refinance process. So let’s break it down. Understanding why your payoff amount is higher than your current loan balance is important. It’s your money! In short, because the mortgage is paid in arrears (I explain this in my video), depending on when the loan is paid off, you will owe interest every day until the current lender is paid back in full.
If you have an escrow account, you might have $3000, $5000, or more in that account. Learn how you can request a Netted Payoff, or receive the standard refund within 30 days after closing.