0

The current principal balance on my loan is 13,293,63, however, in calculating the principal only portion from the bottom of my amortization schedule to my current payment the total is 3,476.27. Am I correct that if I pay the 3,476.27 that my loan will be paid in full? Will I need to pay the remaining escrow payments for taxes and insurance to the end of the year? FYI, my loan has no prepayment fees.

  • Are those payments for the full amortization period or for the term of your loan with your bank ? – ApplePie Jul 30 '17 at 16:52
  • The ammortization schedule was for the entire term of my loan, (30 year mortgage). The principle balance of 13,293.63 is what is listed on my most recent monthly statement which includes taxes and insurance. The principle payment portion that I calculated is for the time period of August 2016 to November 2026. – WooScot10 Jul 30 '17 at 17:11
  • What is the mortgage principal only? No tax, no insurance. – JoeTaxpayer Jul 30 '17 at 18:30
  • To get an accurate mortgage loan payoff amount, contact the loan issuer. From the partial information you have provided, it will probably be about $13.4k, but only the bank which issued the loan can tell you the exact amount that they will accept as full payment by a given date. – user4556274 Jul 30 '17 at 18:49
6

If your current principal is 13000+, that's what you need to pay it off, plus interest between the last payment and payoff day.

The schedule was a plan, and it seems your mortgage is not on schedule anymore. It has no meaning in calculating the payoff.

1

The current principal balance on my loan is 13,293,63, however, in calculating the principal only portion from the bottom of my amortization schedule to my current payment the total is 3,476.27. Am I correct that if I pay the 3,476.27 that my loan will be paid in full? Will I need to pay the remaining escrow payments for taxes and insurance to the end of the year? FYI, my loan has no prepayment fees.

You need to contact the lender to determine the exact mount it will take to payoff the loan. The balance goes up everyday between payments to account for interest. So the minimum amount will be the outstanding balance, and the maximum amount will be the outstanding balance plus a month of interest.

I am now going to address the last of your questions:

Will I need to pay the remaining escrow payments for taxes and insurance to the end of the year?

If you pay off the entire balance of the loan then you will not need to continue to make your escrow payments to the mortgage company. They will return all funds in the escrow account to you. But you will still be responsible for making payments to the local government for taxes, and to your insurance company for your insurance. Because the loan is now paid off the lender does not care if you fail to pay your taxes, or decide to skip fire insurance. They are no longer a part of the process.

After you pay off the mortgage they will also be filing paperwork showing that the debt has been repaid.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.