10-Day Payoff

It is crucial to obtain the correct 10-day payoff information. The 10-day payoff is your current loan from your current servicer, which includes the principal and interest accrued up until today, plus interest that accrues over the next 10 days. You will need to obtain the 10-day payoff information for each loan being refinanced.

You may be able to obtain the 10-day payoff balance online through your account login. Otherwise, you will need to call or email your current loan servicer. Once you report the 10-day payoff to your new refinance lender, the new lender will send a payoff check for this amount in order to pay off your loans in full.

Important Steps

  • Payment address vs. correspondence address: When your new refinance lender is paying off your old loans, the payoff check needs to be sent to the payment address. This address may be different than what is shown on your statements and should be confirmed. This address will need to be provided to your new refinance lender.
  • Specific payoff amount for each loan: You may decide to refinance all or only some of your existing loans. If you choose to refinance only certain loans, you will need to obtain the 10-day payoff amount for just the loans being refinanced.
  • Account number: Always triple check your account number. If you accidently misspell the account number, it could result in someone elseโ€™s loan being paid off instead of yours. This can cause a lot of issues and delays.
  • Sign your new refinanced loan agreement on the same day: It is typically a good idea to sign your new loan agreement on the same day that you have obtained the 10-day payoff amounts and submitted the amounts to the new refinance lender. If you sign on a different day, then you should re-check the amounts and update your 10-day payoff amounts before signing the loan agreement. This helps to ensure that your loan is paid off in full.

Cooling Of Period

By law, you have three days to cancel your new loan after completing the new loan. If you decide to cancel, make sure you act quick and call the new refinance lender.

Your New Refinanced Loan

Once the cooling off period is over, your new refinance lender will send a check (either via mail or electronically) to your current loan servicer. This payment is applied to your loans so they are paid off in full and closed. After this happens, your new obligation is pay off your new loan from the refinance lender. It is always a good idea to check with your prior loan servicer to confirm that your old loan(s) has been paid down to zero, there is no remaining unpaid interest, and that the loan has closed. Because the refinanced amount is based on the 10-day payoff, the time frame might not line up exactly to 10 days. This can sometimes leave you with a small balance or even a negative balance on your account. If a small balance remains, you should pay it off right away. If you have a negative balance, a check may be sent either to you or your new refinance lender.