Loan Payment - Payoff Loan

A payoff Loan represents the final pay-in of a loan. When made, the loan will be marked as paid off and no more payments will be allowed. The Loan Wizard will set all of the amounts due in each payment category to zero when you pay off a loan.

If the payoff amount recorded is more than the amount calculated by the payment wizard and/or the payoff calculator, you must apply that additional amount to any payment category other than Principal.  The principal must always be set to zero when you pay off a loan.  When you apply the additional payment to the interest or late fee categories, the system will adjust the balance due to equal the amount applied and then set the final balance to zero.   

If the payoff amount recorded is less than the amount calculated by the payment wizard and/or the payoff calculator, you must apply that deficit amount to any payment category other than Principal.  The principal must always be set to zero when you pay off a loan.  When you apply the deficit to the interest or late fee categories, the system will adjust the balance due to equal the amount applied and then set the final balance to zero.

Note: Accepting a final payoff amount that is more or less than the actual payoff amount by adjusting the interest rate may affect the overall interest rate calculation for your loan.

The “Applied” column on this page allows you to adjust the values that you are applying to each category.  The total for the “Applied” column must equal the Amount Paid.  If the Amount Paid and Total Applied are not equal, you will see a value in the “Assignment Balance” Field and a message will be shown below the table.  The Assignment Balance must be equal to zero (0) before the system will let you finish recording the payment.

The “Balance” column will show you the amount of underpayment or overpayment there will be for each category. 

To accept the payoff, Click the “Finish” button.  Once you click the “Finish” button, the payoff will be applied to your loan and your loan will be considered as “paid off”, meaning no more payments can be applied to that loan.