Mortgage Pay Off Amount Too High

Added June 26, 2004 by Ilyce R. Glink

Print Articles

Summary: At the end of the calendar year you may receive a statement from your mortgage lender that shows your remaining pay off amount. What if you took out an FHA mortgage and the pay off amount is now too high? You should call your mortgage lender to get clarification on the mortgage pay off amount.

Q: We took out an FHA mortgage to finance our home. When we received the year end mortgage statement (1098), it contained an FHA disclosure for the payoff amount.

The payoff amount is about $3,000 more than the amount we borrowed! Is this an error?

Does it have something to do with the FHA insurance premium we had to pay at closing (approx $2,500)? Did our lawyer not tell us that there is some kind of recapture or prepayment penalty on FHA loans? Please let me know what you think.

A: It's likely that this is the refund of your FHA premium. I'd call the lender and ask.

June 26, 2004.

See more articles on this topic by clicking on the "RELATED ARTICLES" above and to the right.

We have over 5000 articles on Real Estate Advice, Personal Finance Advice and Consumer Advice on our site. We encourage you to look at these articles. As always, if you have a comment on our articles, don't forget to post your comment below. We thank you for coming to ThinkGlink.com.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Previous article Next article