If you’ve ever thought about paying off a loan early, or just wanted to see how much you still owe, you’ve likely come across the term “payoff statement.” But what is a payoff statement and when do you need one?
Let’s break it down in simple terms so you can feel confident the next time you’re managing a personal loan.
What Is a Payoff Statement?
A payoff statement (also called a loan payoff letter) is an official document from your lender that shows exactly how much money you need to pay to completely settle your loan. It includes more than just your remaining balance. It takes into account interest, fees, and the date you plan to pay it off.
A payoff statement is relevant for all types of loans, whether it’s a préstamo personal, auto loan, student loan, or mortgage. Think of it as a breakdown of your final bill, tailored to a specific date.
What’s Included in a Payoff Statement?
Although every lender might format it a little differently, but a standard payoff statement typically includes:
- Outstanding loan balance
- Daily interest (or “per diem” interest)
- Total amount due if paid by a certain date
- Payoff expiration date
- Instructions for payment (where and how to send it)
- Any additional fees or charges (like early payoff or processing fees)
A payoff statement is time-sensitive. If you wait too long to act on it, the amount might change slightly due to interest accrual.
When Do You Need a Payoff Statement?
Here are some common situations where you’d need a payoff statement:
1. Paying Off Your Loan Early
If you’re ready to clear your personal loan before the original term ends, good for you. But before you send over a check or hit “transfer,” you’ll want to request a payoff statement. It ensures you’re not underpaying or overpaying and that your account closes correctly.
2. Refinancing Your Loan
If you are thinking about refinancing your personal loan for a better rate or terms, your new lender will usually ask for a payoff statement from your current lender to know exactly how much to send them.
3. Selling a Home or Car
If you have a secured personal loan tied to a car or other asset and plan to sell it, the buyer or their lender will want a payoff statement to verify how much is still owed before completing the transaction.
4. Debt Consolidation
If you are consolidating multiple debts, the company handling your debt consolidation will likely request a payoff statement for each account involved.
5. Just to Know Where You Stand
Even if you’re not ready to pay off the loan, requesting a payoff statement can help with financial planning, especially if you’re budgeting, reducing debt, or mapping out your timeline to become debt-free.
How to Request a Payoff Statement
It is very easy to get a payoff statement from your lender. Here are multiple ways to do it:
- Log into your online account (look for a “request payoff” or similar option).
- Call customer service and ask for one by email or mail.
- Send a written request (some lenders may require this for security).
Tip: Be sure to mention the specific payoff date you want the statement for. The amount can change slightly depending on the exact day you plan to pay.
Is There a Fee for a Payoff Statement?
In most cases, no. Lenders provide payoff statements for free. But if you’re asking for multiple or expedited copies, some might charge a small administrative fee. It’s always smart to ask upfront.
Why Is a Payoff Statement Important?
Payoff statements help protect you. Without them, you risk:
- Underpaying, and getting hit with more interest.
- Overpaying, and going through delays to get a refund.
- Leaving your loan account open, which could impact your credit score.
By using a payoff statement, you ensure everything is clear, accurate, and final. It’s a small but important step in taking full control of your personal finances.
Conclusión
A payoff statement isn’t just a boring financial form. It’s your clear path to freedom from debt. Whether you’re planning ahead or ready to pay off your loan right now, don’t skip it.
Need help requesting a payoff statement or figuring out your next steps? Our team is here to guide you so you can move forward with clarity and confidence.
EN 
ES 