Escrow & Title

At a Mississippi closing, the seller's existing mortgage is being paid off. The payoff amount includes:

AOnly the remaining principal balance
BRemaining principal balance plus accrued interest, prepayment penalties (if any), and any other fees specified in the loan documents✓ Correct
COnly interest accrued for the current month
DPrincipal balance minus any escrow surplus

Explanation

A mortgage payoff includes the outstanding principal balance, interest accrued from the last payment through the payoff date, any applicable prepayment penalty, and potentially other fees like recording fees for the lien release. The settlement agent requests an official payoff statement from the lender.

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