Q: What is a mortgage payout statement?

A: A mortgage payout statement is also called a “Discharge Statement”.

When you transfer or refinance your mortgage, you will request this statement from your current lender. This is the statement outlining the outstanding mortgage amount payable on the scheduled date for a full payment. The sections of a payment statement should contain the date of discharge, interest accrued from the last day of payment, discharge fee, penalty amount if any and discharge/statement fee.

The statement usually contain an interest amount per day (i.e., per diem). This amount is the intereset a lender charges for each day until the full amount is paid. Please note that the per diem rate is the daily interest that does not contain any principal of your mortgage.