By: Francine D'Elia Wirsching

Francine D'Elia Wirsching — Tue, 14 Aug 2012 21:17:46 +0000

Hi Colleen, a principal balance is different than a payoff balance; however, $4,500 is a lot, even if you hadn’t made your August mortgage payment. Could your escrow account be overdrawn? Maybe a duplicate payment was made from the account; therefore, leaving a deficit. Is your current loan FHA? Is there a MIP fee being assessed. Prepayment Penalty? Ask for the written payoff statement and make sure you can account for every dime on the payoff statement before moving forward. You can also ask for an account history showing all money in and out of your account. I have definitely seen insurance premiums and taxes paid in duplicate. Keep us posted! Thanks for your comment. Francine

By: Colleen

Colleen — Tue, 14 Aug 2012 19:02:06 +0000

I’m in the middle of a re-fi and they just told me my payoff balane, but it’s excessively high. I’ve made all payments on time. My balance is 93k but they say my payoff amount if 97.5k. That’s 4500.00 and seems like an awful lot and definitley doesn’t follow the one months interest rule. Any idea why it could be so high? Thanks.

Comments on: Principal Balance vs. Payoff Balance

By: Francine D'Elia Wirsching

By: Colleen