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I don't understand. You're saying if I decided to pay off my mortgage all at once, my bank would "owe" me my payoff check?
by dahfizz 6y ago
I don't understand. You're saying if I decided to pay off my mortgage all at once, my bank would "owe" me my payoff check?
- ganoushoreilly 6y agoI think op is implying the difference in non-accrued interest. IE your payment at that point would be all principle, thus negating the loan and incurring over payment.
- sombremesa 6y agoIf you calculate all the money you will put into your mortgage loan over time, add it all up, and write a check for that amount, it will be more that your principal balance because of interest.
- paulmd 6y agoInterest accrues on a monthly basis, so if you pay it off now you won't accrue the interest on an ongoing basis. In other words - over the life of the loan/mortgage you will pay $X in principal and $Y in interest. If you suddenly pay the whole thing back, then $Y becomes much smaller. So if you paid $X + $Y in a lump sum then you would receive some money back, is what they are saying. Because you have overpaid on the interest, because that interest never accrued. (not sure whether in this case Citibank paid the full sum of the principal or expected interest or not, but yes, if you did that on your mortgage then you would be entitled to receive some money back)