Thus, you will have to pay them on your own directly. You might be mortgage-free, but you probably have other debts you still need to pay off. I would like to receive Nasdaq communications related to Products, Industry News and Events.You can always change your preferences or unsubscribe and your contact information is covered by our Privacy Policy. If this is the case, you'll have to file it with your local records office personally. But once you get out of debt, you may be left wondering what to do next when it comes to your finances. Being mortgage-free means you have access to your escrow account’s remaining balance. So after many years of financial discipline you’ve finally paid off your mortgage. Check Your Credit Report. About 2 years after paying off the mortgage we got more serious about moving and we started looking at some houses. I ran to the bank at lunch and plopped down $25,000 towards my loan. Although extending your mortgage term can make your payments more manageable each month, you should bear in mind that the longer the term, the more interest you’ll pay. on: function(evt, cb) { Refinance: Which Is Right For You? Without insurance, an accidental fall or dog bite could leave you responsible for a hefty lawsuit. Paying off the mortgage has in fact given us more peace of mind. Owning your home outright is a huge achievement. You're not alone. At the same time, keeping every piece of paperwork that crosses the threshold of a home can result in a lot of paper clutter. I am so excited about paying off my house 4 years from now if I stick with the plan. It is now time for the lender to release the lien. • Put it towards your savings goals. If your lender won't be filing the "satisfaction of mortgage" … In fact, since 1928, the stock market has had an annualized return of almost 10%, including dividends. In addition to contacting your records office, you may want to run a credit report as a second confirmation that no outstanding mortgage is associated with your name. Homeowners insurance isn’t mandatory, but property taxes definitely are. Fewer than one in four (23%) diverted the mortgage repayment ‘pay rise’ into their pension. Once your mortgage is completely paid off, no lender will submit property taxes for you. Now What?, originally appeared on ValuePenguin. In either situation, it's your responsibility to verify with your local office that your mortgage has been released and that no lender holds a lien on your home. Q: I’m just about to pay off my mortgage. This will ensure that your mortgage is canceled and that your lender no longer has a lien on your property. Is a Reverse Mortgage a Good Option for You. Some lenders will send it to your local government. This shows that your lender acknowledges that you have satisfied your debt. 1. This way, you'll never be surprised by a hefty tax bill. Each of those documents may be … Your mortgage free list of things to do also sounds a lot like what we said we would wanted to do after we pay off our house. Once you are your home’s sole owner, you don’t necessarily need your policy anymore. The process of receiving and filing documents can take a while. In fact, there are a few final steps you need to take before you can pop that bottle of celebratory champagne. Everything You Should Know. Whatever the case may be, the extra money will help make these goals a reality. In addition to retirement savings, many families have other investment and savings goals, such as funds for a new car or their children's college tuition. Pensions a low priority . You should set aside enough money each month to cover these expenses. We all have savings goals. Once that debt is paid off, move to the debt with the next-highest interest rate, such as any car payments or any student loans you're responsible for. Copy and paste multiple symbols separated by commas. Make your money work for you by investing it. It’s important to hold onto these documents and keep them organized in a safe place. If you are looking to renovate after paying off your mortgage, contact us today to learn about your loan options. This will give you financial security when unexpected expenses come your way. Note that some lenders may send the certificate of satisfaction directly to you. It indicates that you agree to the terms of the loan (monthly payments, interest amounts, etc.). If you've finally paid off your mortgage debt, keep that trend going by applying your monthly mortgage payment to other debts. Namely, there are several administrative tasks that you’ll need to address, ranging from obtaining certain documents, figuring out what to do with the extra money you’re not using for mortgage payments, and more. Work towards being 100% debt-free by paying off your car payment, credit card bills, student loans, etc. Many financial advisors promote investing money in the stock market instead of paying off your mortgage. However, maintaining a policy will help you protect your assets. You also need to make sure you don’t have any amount owing on any related products. Support our journalism. When you pay off a mortgage, the original deed of trust is sent back to you by the mortgage holder marked “paid” or “cancelled.” This process usually takes … Your lender will also send out a certificate of satisfaction. Subscribe today. In this situation, you may need to contact your lender to request a termination of your loan agreement. If you've finally paid off your mortgage debt, keep that trend going by applying your monthly mortgage payment to other debts. And remember that renovations aren’t just for you—they can also increase the overall value of your home when it comes time to sell. Now what? Ironically, I faced the very same “now what?” question several years ago when I reversed course after coming to the conclusion that it no longer made financial sense for me to pay off the mortgage early. This will be the amount that was put into an escrow account to pay homeowners insurance premiums and proper taxes on … This is an important step, as any named policyholder is entitled to a payment if you file a homeowners insurance claim. Homeowners insurance provides protection against liability if someone is injured on your property, and against a number of perils that could significantly damage your home. Now if you’ve got a mortgage, until you get it paid off, for goodness’ sake, take the tax deduction. 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