Loan Amortization Schedule vs. payoff amount???

[ohiominnie]

I want to use a little extra funds right now to pay off one of our add ons.

I checked DVCmember.com and looked at my loans. The contract in questions has a payoff amount of $8546. But when I look at the loan amortization schedule, it says that my balance as of my last payment date was $7289.

I don't get it! We double checked when we bought DVC that there were no penalties for early pre-payment of the loan b/c sometimes dh gets bonuses that we can apply....but why the difference of over $1200 between our loan balance and the stated "payoff???"

I'm not a financial wizard, so maybe I'm missing something obvious, but I definitely don't want to pay more than I have to!

TIA!

 

[RobDoc]

I'd sure suggest checking with Member Accounting before getting upset about what is listed on the website. It may list the entire amortized schedule, including interest - so you'll need to call and ask for the actual balance due. The mortgage is based on simple interest and has no prepayment penalty, but the website may include the total including interest.

I'm sure you'll get a different balance if you call and ask.

 

[JimC]

Interest is generally paid in arrears and I believe Disney charges interest based on the exact date that they receive your payment. So your payoff will be the balance due per your schedule plus accrued interest to that date plus/minus any interest adjustments for payments that came in later or earlier than the amortization schedule anticipated.