SCENARIO 1: All Payments Paid, 1st Month Payoff

In this first scenario, the borrower has made all their previous payments for January, February, March and April 2021. They want a payoff commencing on May 1 2021.

(We are assuming that the April 2021 payment has already cleared or was certified).

Quick Links

Record Payments

Click on the Record Payments worksheet.

In our example image below, you will see that all the payments are up-to-date and entered.

The payment for the previous month has been entered and confirmed cleared.

You do NOT need to accrue the payment for May 1 2021 as this is collected at Payoff. However, if you have received a payment for May 1 2021 then you would enter it, just make sure your Payoff start date is AFTER your paid date.

Record Payments worksheet Payments entered for all months

To create your Payoff, click on the Payoff worksheet.

In our example, the date we want the Payoff to start is May 1 2021.

We entered 5/1/21 in Cell G2.

The lower section of your Payoff Statement will now look like the example below:


In our example loan, the loan is interest only and there is a balloon of $125,000.00.

No extra payments have been made to principal, so the outstanding balance is still $125,000.00.

  1. On May 1 2021, you will notice that the Payoff Amount is $125,729.17. This is because you are paying off in May and the April payment is due which is $929.17 (including escrow, but as that escrow is not due because you are paying off it is not included). The May payment hasn't already been received.
  2. There is $200.00 shown as Charges, as this is what was entered in Cell G4.
  3. Additional Late Charges shows zero until May 11 2021, when the Late Fee kicks in as the days before late is 10 days.
  4. The amount in escrow to be returned to the borrower. If for any reason there are amounts that are NOT to be returned to the borrower as they have been spent, then you need to close out the escrow in Record Payments. Learn more about Escrow.
  5. The Total Payoff is the Payoff Amount + Charges + Late Charge if applicable - Escrow.
On May 1 2021, the Payoff you are expecting is therefore $124,929.17.

REMEMBER: If you DO NOT want Late Charges showing in (3) above, then click on the Dropdown in Cell O25 and select 'No' and all further Late Charges for the Payoff month will be zero. For example, you agreed with your borrower the final payment would be paid at Payoff so you're not waiting for a check to clear before closing, so charging a Late Fee is not appropriate.

What do you do when you receive your Payoff?
Learn how to apply your Payoff and close off your loan.

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