Akademik

Payoff Statement
A statement prepared by a lender showing the remaining terms on a mortgage or other loan. The payoff statement shows the remaining loan balance and number of payments and the rate of interest. It also states the amount of interest that will be rebated due to prepayment by the borrower.

Also referred to as "letters of demand."

Payoff statements are prepared whenever a borrower considers paying off a loan early. Although payoff statements can apply to any type of loan, they are most commonly prepared for mortgages.


Investment dictionary. . 2012.