Your monthly mortgage statement and your official payoff statement serve two different purposes.

Your mortgage statement typically shows your principal balance as of the statement date and your regular monthly payment. However, it does not tell us the exact amount required to pay off your loan on a specific day.

An official payoff statement is ordered directly from your mortgage servicer and includes:

• Your current principal balance
• Accrued daily interest through the payoff date
• Any unpaid escrow shortages or advances
• Outstanding fees, if applicable
• The exact amount needed to satisfy the loan on a specific date

Because mortgage interest accrues every day, the amount needed to pay off your loan changes daily. That’s why lenders, title companies, and closing attorneys rely on an official payoff statement rather than your monthly mortgage statement.

If you’re refinancing or selling your home, the payoff statement ensures your existing mortgage is paid in full and prevents delays or shortages at closing.