Finance English
Banking

What is Payoff?

Payoff The complete repayment of an outstanding loan balance, including principal, interest, and any accrued charges, thereby closing the loan obligation as per contract.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Payoff” Used in Practice?

The borrower requested a payoff statement to close the mortgage loan and transfer the property title.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Payoff?

The complete repayment of an outstanding loan balance, including principal, interest, and any accrued charges, thereby closing the loan obligation as per contract.

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