Mortgag Payoff

Lender Spreadsheet provides you with a detailed Payoff Statement that you can easily generate with a little guidance from you.

The Payoff Statement includes all outstanding interest and late/bad charges, so if your borrower has not made all their payments or paid their late fees, you won't lose out.

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Payoff Scenarios

The following topics provide step-by-step guides on what can happen when your borrower pays off. These include:

For loans Originated 1st of the Month:

  1. All Payments Made, 1st Month Payoff
  2. All Payments Made, Mid Month Payoff
  3. Last Month NOT Paid, Mid Month Payoff
  4. Last two Months NOT Paid, Mid Month Payoff
For Loans Originated Mid Month:
  1. Mid Month Originated. Start of Month Payoff
  2. Mid Month Originated. Last Month NOT Paid, Mid Month Payoff
For Loans using a Daily Late Charge:
  1. Last two Months NOT Paid, Mid Month Payoff with Daily Late Charge
What do you do when you receive your Payoff?
Learn how to apply your Payoff and close off your loan.

We will correctly handle all the above scenarios, with a little guidance from you.

Only enter in the colored cells. Everything else is calculated.

Don’t worry if you don’t find the instructions below to be clear, there is a step-by-step example of each of the scenarios.

All payments are entered on the Record Payments worksheet.

As part of the above scenarios we cover Late Charges. Learn more about Late Charges.

Payoff Overview

Firstly, remember how mortgage payments are applied
Mortgage payments are made at the end of the month that they apply to. So a payment received on March 5 covers interest for February.

If your borrower wants to payoff on April 2, you would need to accrue the interest for the whole of March + 2 days of April.

Two simple rules:

  1. If you HAVE received a payment for the current month, ensure you have entered the received date in Column B and amount in Columns E and M on the Record Payments worksheet.
  2. If you have NOT received a payment for the current month (the month you want the Payoff in), but you have for previous months, then as long as all previous months are entered correctly, you do not need to accrue a payment for the current month as the Payoff will include it.
  3. If you have NOT received a payment for the current month or earlier months, you need to make sure that all previous months are accrued, by entering a suitable date in the Late Notice Date in Column G on the Record Payments worksheet. Usually the 1st of the month if you have originated your loan on the 1st of the month and mid month if you originated your loan mid month. For previous months the date would be AFTER the Late Due Date, if you want to accrue the late charges, or BEFORE the Late Due Date if you do NOT want to accrue earlier late charges. Learn about Late Charges.
What if I've not been paid in months and don't want to add in all the Payments?
If for example, you've not been paid for the last 6 months, you can run the Payoff and it will work out what interest is due for that entire period. BUT, because you have not entered all your payments individually, the Payoff does not know if for those 6 months there were Late Charges or Bad Check Charges due. This means that Late Charges and Bad Check Charges won't be included in the Payoff. We do not recommend you do this.

Can I enter no payments at all and still get a Payoff
We also do not recommend that you do, as the Payoff looks for the last payment made and it will likely error if you have never recorded a payment. It will also not include Late or Bad Check Charges.


Create Payoff

Click on the Payoff worksheet.

We are assuming that all payments are entered correctly at this point. Please make sure they are BEFORE you create your Payoff or it will not be accurate.

To start, simply enter a date in Cell G2.

You can enter any additional charges that are due at Payoff in Cell G4. For example, legal fees or insurance you've paid on behalf of the borrower etc.

Enter the Payoff Start Date and any addtional charges or legal fees on the Payoff Statement

As soon as you enter a date, the Payoff will populate its fields.

Illustrated example of a Payoff showing arrows pointing to the Lender Details, Borrower Details, Property Details and the payoff amounts in the lower section

There is a section to the righthand side of the screen which includes further information about the Payoff and further options.

There is a dropdown on the bottom right, which gives you the option of cancelling any Late charges for the CURRENT Payoff month. This is ONLY for the Payoff month, if for example you wish to not charge a further Late Charge as the Payoff is taking longer than expected due to some unforeseen circumstances. This will NOT change any previous outstanding Late Charges that you have accrued.

Further informatin section for the lender to see only explaining the payoff statement amounts

If you select Yes on the dropdown, then you'll notice that the Late Charge that in the picture above is due from May 11 2021 is now removed.

We don't recommend forgiving late fees as good lending practice, but there is the option if you need it.

Example Payoff Statement showing the date from which late chages are added as after the Days Before Late Grace period ends

Warning on Payoff Dates


In our example below, we have accrued a payment that was not received on May 1 2021, but we've also stated we want the Payoff Start Date to be May 1 2021.

You either need to change the Payoff Start date to AFTER the date of the last payment or the date it is accrued OR, change the date of the last Payment or the date it is accrued.

Illustrated warning message showing that the payoff start date must be after the last payment

You will also likely see the warning box below to remind you when entering the Payoff Start Date.

If your borrower has not sent a payment for their final month and you are collecting it at Payoff, you do not need to accrue that payment. All you have to do is make sure all previous payments are entered or accrued.

Warning message asking you to Enter a Date AFTER the last Payment Date

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