He’s called every hotline. He’s visited every website. He’s gone to every carnival. And now, Marty has traveled halfway around the world just to meet the world’s most powerful clairvoyant: Madame LeKismette. As he looks deep into her eyes, he tells her he only has one question: how much money would he need, right now, today, to pay off the remainder of his mortgage? He’s just come into some money and he’d really love to eliminate that big monthly expense. “Silly Marty,” Madame LeKismette says. “You did not need to come all this way. All you had to do was ask your mortgage lender for a payoff statement.”
As always, Madame LeKismette is right. If we’re planning on pulling a Marty and paying off our own mortgage or other type of loan, all we have to do is contact our lender and ask for a payoff statement. A “payoff statement” is exactly what it sounds like: it’s a statement that tells us how much money is required to pay off a loan in full at that moment. It’ll also tell us if we have to pay a fee to pay it off early, or if we’ll get any sort of rebate on the interest we’ve already paid.
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Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello
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