How Do I Find Out What Is Owed on a Mortgage?

by Amber Keefer, Demand Media
    Check your mortgage documents for a prepayment disclosure.

    Check your mortgage documents for a prepayment disclosure.

    It’s a fairly easy process to find out how much you still owe on your mortgage loan. You can get details about your mortgage balance and payoff requirements from several different resources available to you through your lender. You will need this information on your current mortgage before you can calculate the costs associated with refinancing or selling your home.

    Step 1

    Determine whether it’s the outstanding balance on your mortgage loan or the payoff amount that you want. You will need the payoff amount if you want to pay your mortgage in full or are planning to refinance your current mortgage. The payoff amount will be higher than the actual amount of your current mortgage balance.

    Step 2

    Read the last account statement you received. There should be a section on the statement that shows your current balance. Take into account that the balance that appears on the statement doesn’t include any payments you’ve made since receiving the statement. In most cases, there will be a notation stating that the balance isn’t the same as your payoff amount.

    Step 3

    Sign on to your account if you have Web access through your lender. You should be able to find all kinds of details pertaining to your mortgage. The website should show any recent payments you’ve made along with the current balance of your mortgage.

    Step 4

    Contact your lender directly to get your loan balance. Your lender will able to pull up your mortgage account to give you this information. If your original lender sold your mortgage to another company, customer service should be able to provide you with the name and contact information of the new lender. You must then contact that financial institution for details about your loan.

    Step 5

    Ask your lender or mortgage broker for the exact payoff amount for your mortgage. Your lender can provide you with a payoff amount as of the day you are calling. Bear in mind that the payoff amount changes daily.

    Step 6

    Prepare for your payoff amount being higher than the balance shown on your statement. This is because mortgage loans run a month behind. For example, in December you are actually making November's payment. In addition, there are always a few extra days of interest added on to your mortgage; therefore, the payoff will be more than the balance.

    Step 7

    Review your mortgage agreement to see if you will be charged a prepayment penalty if you are planning to pay off your mortgage early. Look for a document with the title Prepayment Disclosure or ask your lender. Not all lenders charge a penalty, but some do. Real estate expert Ilyce Glink explains that banks often use prepayment penalties to attract borrowers looking for low interest rates, while still guaranteeing a profit on the loan. The penalty will be added on to any amount that you still owe on your mortgage. While many lenders charge a flat fee, others may charge a percentage of the amount you are paying off.

    About the Author

    Amber Keefer has more than 25 years of experience working in the fields of human services and health care administration. Writing professionally since 1997, she has written articles covering business and finance, health, fitness, parenting and senior living issues for both print and online publications. Keefer holds a B.A. from Bloomsburg University of Pennsylvania and an M.B.A. in health care management from Baker College.

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