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.
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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