Information for Homeowners Paying off Their Mortgage

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Filed under: Market Comentary

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With most of the talk in the mortgage business focusing on low interest rates and the increase in the housing market, some of you may be close to that wonderful day of actually paying off your mortgage. According to Jann Seal, here is some important information to know concerning all of the vital documents pertaining to your mortgage.

Your Deed of Trust

Years ago when you first bought your home, there was a deed issued and then recorded in your name with the mortgage holder who was listed as a lien holder. Once you pay off your mortgage, this original “deed of trust” will be sent to you by the mortgage holder. It will be stamped or marked “canceled” or “paid.” This process will normally take about 60 days. But remember, since deeds are public records, you can check the progress with your county registrar.

Your Promissory Note

When you “borrowed” money to purchase your home, you signed a “promissory note.” Once you have finished paying off your mortgage, your lender is responsible for sending you confirmation that this “promissory note” has been paid in full. This is known as a “satisfaction of mortgage.” Once you receive this, make sure you verify that it has been recorded.

Your HUD Statement

When you bought your home, you were given a Housing and Urban Development statement. This specifically outlines every expense related to your purchase and is your proof to the federal government if you decide to sell. It will show that you paid a specific price, minus expenses, for the home.

Your Title

When you purchased your home, a title search was performed. If you still have the copy, make sure to keep it. No matter how long you own your home, holding a clean title will remove any doubt or questions which may arise if you eventually plan to sell your home.

Your New Title

Once all of the paperwork has been filed, which may take several months, ask a title company to perform a “new title” search. You want to do this to see that your mortgage has been removed from the title. Doing this may save you some aggravation and time if you decide to sell your home.

One Final Thought…

If you truly owe a very small amount on your current mortgage, although it might not seem prudent to increase that debt, sometimes it actually makes sense.  Perhaps you need home improvement, money for a child’s college tuition, a vehicle, or to use as a down payment on an investment property.  You could be in the perfect position to leverage your equity and invest for the future.  Chances are you may never see money this cheap again.

If you are at the stage in your mortgage where it is getting close to being paid off and you might have questions about what you need to do, please feel free to contact me so we can make sure everything goes smoothly.

 

 

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