Why is my payoff more than my statement balance?

The interest on your mortgage lags by one month. For example the payment you make this month covers the payment for last month.

If you have set up an escrow account for your taxes and insurance, you may be refunded the money remaining in your escrow account. This is separate from the funds you may receive at the closing. It comes from your previous lender and may take 30 days or more to receive your check. This information will be detailed in your payoff.

If you are paying off a loan that has a pre-payment penalty early, then your payoff will include not only your principal balance and interest in arrears, but also the amount of the penalty itself.

The balance on the monthly statement is the balance as of the statement date. Since interest expenses are accrued daily, the "pay off" amount is always higher than the statement balance.

Interest is calculated every day on the balance that remains on your loan. So, everyday that balance will go up because there is another day of interest that has been added to your loan. When you ask for a payoff, they will project out sometimes 10-15 days to give every a cushion to work with when trying to send in that final payment. This amount will be higher than what the actual principle and interest that is owed.