Mortgage
A loan used to buy a home, secured by the home itself. If the borrower stops paying, the lender can foreclose. The word is often used for the full loan setup, including the note and the security instrument.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Your mortgage is the biggest line on your closing statement, and its payoff is what stands between the sale price and your proceeds. Ordering a payoff figure early is the first step toward knowing your number.
Part 2 of 4
A simple example
Sale price $300,000, mortgage payoff $205,000, agent fees and closing costs about $20,000. Roughly $75,000 comes to you.
| The line | On a $300,000 sale |
|---|---|
| Sale price | $300,000 |
| Mortgage payoff, with interest to the day | About $205,000 |
| Fees and costs | About $20,000, depending on agent fees |
| Your proceeds | About $75,000 |
The mortgage is paid first, from the buyer's money, before anything reaches you.
Part 3 of 4
What people get wrong
That the balance on your statement is your payoff. The payoff adds interest to the closing date and any fees, and it is usually a little higher.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
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