Escrow & Title

At a Mississippi closing, the 'payoff statement' from the seller's lender shows $147,250 outstanding. The payoff statement is valid through June 15. The actual closing occurs June 20. The correct payoff amount will be:

AExactly $147,250 as stated
BHigher than $147,250 due to per diem interest accruing between June 15 and June 20✓ Correct
CLower than $147,250 since additional payments were made
DThe same since interest stops at the payoff statement date

Explanation

Payoff statements include per diem (daily) interest accruals. Since the closing occurred 5 days after the payoff statement's good-through date, additional per diem interest has accrued.

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