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As of December 19, 2017, MyQL is now referred to as Rocket Mortgage.

Usually, people pay off their mortgage when they either refinance or sell their home and get a new mortgage. There are also those who are able to pay off their mortgages on their own. Here, we answer some common questions about the payoff process. Parts of the process are the same for every lender, while other details are specific to Quicken Loans.

Requesting a Payoff

Paying off your mortgage isn’t too complicated, but it’s also not as simple as signing in to your account and paying off the balance. If you’re refinancing or selling your home, a third party – usually the title company – will request the payoff. The process takes at least 48 hours when dealing with a third party because there are several steps involved so the lender can handle the payoff with the title company. And, the title company can now call into our phone system to request a written payoff statement.

If you’re paying off your mortgage on your own, you’ll need to call to request a payoff letter. This document will have the exact amount you need to pay through whatever date you request. At Quicken Loans, we’ll email or fax the letter back to you and upload it to MyQL, so you may be able to pay off your loan the same day if you want. You can also request to document with the pay-by-phone system by calling (800) 508-0944. We added this feature to make it easier for you to get the information you need about your payoff without speaking to a representative.

You have to request a payoff letter so we can precisely calculate the final amount, including interest and any fees, such as the county recording fee, or statement fee, which the amount could depend on your state and how many times a payoff quote was requested. Some loans accrue interest daily and some monthly. Even if yours is monthly, your lender needs to calculate the exact amount of interest you’ll owe on the day you pay.

It’s important to update your mailing address if you’re moving so that we have your correct address on file in case you’re due an escrow refund. And so we can send you your tax forms at the end of the year.

Making the Payment

Along with the final payoff numbers, the letter will have a “good-through” date. This means the total amount you need to pay off is only good through the date shown because additional interest will accrue after that date. You’ll need to request an updated payoff letter after the good-through date.

A mortgage must be paid off with certified funds – either a wire transfer from your bank or a certified check. For Quicken Loans clients, it’s important to note that you can’t just sign into MyQL and pay the total balance you see there. When you do send the payment, we’ll send you an email confirming we received the funds.

Escrow Refund

If there’s money left in your escrow account after you’ve paid off your loan and/or you overpaid the loan (by paying before the good-through date, for example), the extra money will be sent back to you. If you’re refinancing with Quicken Loans, we may net your escrow, which means we’ll take whatever money is left in your escrow account and apply it toward your payoff amount.

Again, this will depend on your loan type. On FHA mortgages, for example, the lender can’t net the escrow account, so you would receive an escrow refund check from your old loan instead of having the balance applied to your new principal.

If you are due an escrow refund on your Quicken Loans mortgage, we’ll process it within 10 to 12 business days from when we receive the payoff, and you can choose to have it sent as a check or deposited directly into your bank account.

Sometimes the lender has to hold money in your escrow account after your loan has been paid off. This is because mortgage insurance is paid in arrears, meaning it’s paid at the end of the time period you’re paying for instead of upfront. So your lender may have to hold on to some of your escrow funds to cover those last costs if you have mortgage insurance.

After your mortgage has been paid off, it has to be recorded with the county, along with what’s called the Discharge of Mortgage document. Some states require the Discharge of Mortgage to be sent to you from your lender, while others require the county to send it to you. So when you receive it will depend on your state’s requirements.

If you have automatic payments set up for your mortgage, either through your lender or your bank, make sure to cancel them as soon as your loan has been paid off.

Contact your lender to find out what your state requires for the Discharge of Mortgage and to get answers to other questions about your loan.

Remember, you can also request your payoff through our pay-by-phone system by calling (800) 508-0944. You can do this whether you’re actually paying off/requesting a quote in writing, or if you’re just wondering how much is remaining to payoff.

If you have more general questions or comments for us, share them below.


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This Post Has 12 Comments

  1. Hello,
    I sent my payment to pay off my mortgage on 3/31/2020. The amount is good through 4/17/2020. My bank sent the check, but Quicken hasn’t cashed it. Do I have to worry that there may be an additional charge if they may not cash it before the ” good through” date?

    1. Hi Deb:

      I’m sure there’s nothing to worry about, but I’m going to get this to our team to make sure that everything is going as expected. Congratulations on paying off your mortgage! Have a great day!

  2. I actually got a payoff letter from Quicken loans. But I was shocked to see that they have included 2 months (equal to $82.10) of PMI. So why should I pay a PMI for 2 times, when I am about to pay off my loan? Please clarify

    1. Hi Kaitlin:

      I’m going to get this to our Client Relations team to go over what’s included in your payoff statement and why. Thanks for reaching out and have a great day!

    1. Hi Jim:

      I’m going to get this over to our Client Relations team to look into your situation and reach out! Have a wonderful day and congratulations on paying off your home!

  3. I actually got a payoff letter from Quicken loans. But I was shocked to see that they have included 3 months (equal to $950) of PMI. So why should I pay a PMI for 3 times, when I am about to pay off my loan? Please clarify.


    1. Hi Abdul:

      First, congratulations on getting ready to pay off your loan. As to your question, we would need someone to look at your file to go over exactly what’s happening and why you’re being charged that amount. I’m going to get this over to our Client Relations team to take a deeper look.

  4. Hi,

    I will not be paying off my mortgage quite yet, but I do have a lump sum payment of 220K. The one time payment says minimum is 99,999.99. Do I need to call to get this payment through?

    1. Hi Brian:

      I’m going to go ahead have someone from our Client Relations team reach out to help you get this taken care of. Have a wonderful weekend!


  5. will there be any penalty, if you refinance the mortgage loan to another bank? Also if there’s a Loan that exiting amount at $99,476.92. Want to move it to another loan company? but not sure if there’s any gain is beneficial by doing this move. please advice. What is the current rate of interest for this month of july2017?

    1. Hi Jerry:

      For any mortgage contract, there’s typically a period of time specified in your documentation that you must stay in that loan before you can refinance it either with the current company or elsewhere. Whether it makes sense to refinance depends on a variety of things including whether you’re comfortable with the current term and payment, what your interest rate is compared to current interest rates and whether you want to take cash out. I can’t give you a specific current interest rate in the blog comments. There are two reasons for this: The first is that rates change daily and sometimes even more often than that depending on movements in the stock and bond markets. Secondly, the rate you get is impacted by factors including your income, the type of property you’re buying, the amount of assets you have available and your credit. The best person to talk to would be one of our Home Loan Experts. They would be able to go over your situation in greater detail and give you more concrete information. You can get in touch with them by filling out this form or calling (888) 980-6716.

      Kevin Graham

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