Housing is easily the most expensive part of a family’s monthly budget — in fact, it takes up an average of 16% of the ENTIRE budget.
That’s why it’s so exciting when you finish paying off a home! But what’s next? What happens when you DO finally pay it off?
Here’s some info!
- File a Satisfaction of Mortgage Statement — After you pay off your mortgage, the mortgage lender should send you a Satisfaction of Mortgage Statement. If it hasn’t been received after a month, call them to see what’s going on. This document will need to be filed with the county clerk.
- Cancel Your Payments — Make sure to cancel automatic mortgage payments so that they don’t keep coming out of your account AFTER the loan has been paid off!
- Notify Insurance & Taxing Authority — Paying off your mortgage will close your escrow account.
However, most homeowners are paying their insurance and property taxes through escrow. Make sure to call and update the homeowner’s insurance and property tax info so that it’s coming out of the right account.
Hope that helps!