Short answer
At closing, the sale proceeds pay off your mortgage before you receive anything. The closing agent asks your servicer for a payoff statement, which federal rules (Regulation Z) say must be sent within seven business days of a written request. The payoff is usually more than the balance on your last statement because it adds interest through the payoff date. Any money left in your escrow account is refunded within 20 business days after the loan is paid off.
Why is the payoff more than my balance?
Mortgage interest is paid after the month it's charged, so the payoff adds interest from your last payment up to the payoff date. It may also include small fees, such as for recording the release. The statement shows a payoff good through a specific date and a daily amount to add if closing slips.
Who handles it?
Usually the closing agent, a title company or attorney, requests the payoff, wires the money to your servicer at closing, and makes sure the mortgage release is recorded at the registry of deeds afterward. You sign an authorization so they can request it. Keep making your regular payments until closing; any extra is refunded.
What happens to my escrow account and NH property taxes?
Your servicer has 20 days, not counting weekends and federal holidays, after the payoff to refund any escrow balance, unless it moves the money to a new escrow account with the same servicer. Property taxes are split between you and the buyer at closing based on the tax bill dates, so check the settlement statement for the tax proration. See NH tax bills and escrow.
I'm selling to buy my next home. What should I plan?
Timing matters. You can sell first and use the proceeds, or buy first and sell after. Tom can show you how each option affects your next loan; see buying before you sell and renting out your current home. Sellers also pay half of the NH transfer tax; see the closing cost guide.
Sources
- CFPB, Regulation Z 12 CFR 1026.36(c)(3), Payoff statements
- CFPB, Regulation X 12 CFR 1024.34, Escrow refund after payoff
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.