A payoff statement is a lender's written statement of the exact amount needed to pay off a loan in full as of a certain date, including principal, interest and any fees, used at closing to clear a mortgage or deed of trust from the title. It expires after a short window because interest keeps accruing daily. A seller with a mortgage needs a current one before closing can happen.
Why it matters
The payoff statement, not your last mortgage statement, is what actually clears your loan at the closing table.