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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: gggeek on May 02, 2019, 07:34:31 PM

Title: What do you need to know when paying off your mortgage?
Post by: gggeek on May 02, 2019, 07:34:31 PM

I am on the precipice of paying off our mortgage (one payment left!!!).  I was wondering what I need to know at this very step.  What are the important documents to get, the right steps to take with the lender (BoA), and anything I should be thinking about.

Appreciate any insight.
I will be debt free after this and well on my way to FI/RE in ~7 years.

Title: Re: What do you need to know when paying off your mortgage?
Post by: One on May 03, 2019, 12:03:38 AM

You need a letter of reconveyance, I believe it is mailed from the county. Congratulations!!!

https://www.reference.com/business-finance/definition-full-reconveyance-2c776404e69a952a

Title: Re: What do you need to know when paying off your mortgage?
Post by: secondcor521 on May 03, 2019, 04:11:24 AM

Normally the bank will have some sort of mortgage lien on your property recorded usually with the county.  Make sure that is removed.  Contact your local county recording office and find out what should be done.

Review your insurance coverage on your home.  You may want to adjust it.

Remember that you'll be paying your property taxes and insurance bills directly from now on (if you aren't already).  Make sure you account for that in your budget, and make sure they send the bills to you directly.

All of the above went smoothly for me, FWIW.

Title: Re: What do you need to know when paying off your mortgage?
Post by: hdatontodo on May 03, 2019, 06:23:05 AM

Get an exact payoff figure from the bank for a certain date and their desired payoff method.