My most recent mortgage statement shows my payoff as $xxx,xxx. Why do you need to order a payoff from the bank?

Mortgage payoffs are always higher than the balance on your mortgage statement for two reasons: the balance on your statement shows the principal balance but does not reflect the daily interest that accrues, and interest is paid in arrears meaning that this months payment is paying last months interest. Consequently, a payoff is your principal balance, your daily interest up to the point of funding, and last month’s interest payments.