Home Buying in Philadelphia>Question Details

Jeanette Wal…, Home Owner in 19132

Are most payoff requests double the balance on the mortgage?

Asked by Jeanette Walters, 19132 Fri Jan 27, 2012

Say the balance on the mortgage of a 49,500 house s 55,000. If you ask how much will it be to just payoff the mortgage, with they try to charge double or something?

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I am not sure if you question is:

1. Will the payoff amount of a $55,000 mortgage lien be $110,000?, or
2. If a seller is asking for $110,000 as a purchase price for a house they bought for $49,500?

As to #1, if the remaining principal balance is near $55,000 and there is acrued interest that has not been paid, and there are unpaid escrow amounts due for taxes, insurance, etc. The payoff may be much higher than the $55,000 mortgage amount you determined. However, I am sceptical that the loan payoff would be anywhere near double.

As to #2, what is the value of the property now? If the seller obtained the property for $49,500, maybe value was added by market conditions or from improvements.

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1 vote Thank Flag Link Fri Jan 27, 2012
Your monthly statement SHOULD all the figures:
If you pay off the loan, a month at a time, after 30 years you will have paid more than double.
But if you call them and ask for the payoff, you should have a figure close to the loan amount.
They could be charging you a early payoff penalty, sometimes imposed in the first 5 years of the loan.
Show your papers to a good Mortgage Loan officer.

Good luck and may God bless
1 vote Thank Flag Link Fri Jan 27, 2012
Good Evening Jeanette,
Any Mortgage Rep that you work with..... Ask for an amortization sheet.
It shows you the best way to pay more towards your principal and less to your interest.
This breakdown of payments will allow you the best way to pay off the Mortgage and minimize the amount of months that you would pay towards the interest
After 16 years of service....I have a group of Mtg Reps that are top guns in this area of finance.
For a confidential talk…. Feel free to call
All the Best John + Sheri 215-757-2889
Web Reference: http://www.HomeCatch.com
1 vote Thank Flag Link Fri Jan 27, 2012
Unless your loan has additional terms I'e prepayment penalties, a rough way of estimating your payoff is to add one mortgage payment to the balance plus per diem interest. Some banks will give you a verbal payoff over the phone, if you are concerned. A written payoff will be needed though for the title company.
1 vote Thank Flag Link Fri Jan 27, 2012
No. Why would they do that? They are going to give you a payoff that is good through a certain date due to interest.
1 vote Thank Flag Link Fri Jan 27, 2012
No double charges..... The title clerk will charge the remaining monthly interest on a Per Diem Basis.

I have additional suggestions for you but I would rather have a confidential conversation.

All the Best Sheri Curci 215-757-2889
Web Reference: http://www.HomeCatch.com
0 votes Thank Flag Link Fri Jan 27, 2012
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