The dream of all homeowners is to be able to pay their mortgage and live in a free and clean house. Many homeowners don’t even think about paying off their home loans and think it’s nearly impossible for anyone to own a home without a mortgage. However, there are people who have goals and work very hard to reach that goal of paying off their mortgage. Homeowners who accomplish the arduous task of paying off their mortgage deserve bragging rights and it’s an impressive goal and accomplishment. The very few and proud homeowners who pay off their mortgage loans need to ensure that, after making the final mortgage payment on their home, the mortgage lender has released the lien on the property from the title to the property, so that In the event that they need to sell their property at any given time, there will be no red tape. All FHA loan programs require escrows for property taxes and homeowner’s insurance, so once the mortgage loan has been paid off, the escrow requirements for property taxes and insurance will be the sole responsibility of the owner.

Things to know about paying your mortgage before your final payment

As you near the final payoff line on your mortgage, there are several things you should know about paying off your mortgage before your final mortgage payment is due. One of the things you should do is request a final settlement figure from your mortgage lender 45 to 60 days before your last and final mortgage payment. Homeowners need to understand that mortgage borrowers pay their home loan payments late, and because they are paying late, homeowners may actually owe more on their mortgage balance than they think they owe. For example, if a homeowner has a mortgage payment due this month and pays his payment now for this month, this month’s payment covers the previous month’s principal and interest payment. The clock of interest is always ticking, day or night. Interest is added every minute of every day. If you are one of those homeowners who has been paying housing payments in excess of the monthly minimum due, you may be surprised to find that you owe substantially less than you thought you owed.

How do you pay your mortgage?

Homeowners with mortgages have a mortgage loan servicer who services their mortgage loan. The loan servicer’s responsibility and scope of work is to ensure that the borrower’s accounting records, including escrow deposits, are accurate and that monthly statements are submitted on time and record that payments made by borrowers are registered correctly. When a homeowner applies for a mortgage loan settlement, the mortgage loan servicer is the agent that processes the settlement statement to the homeowner or mortgage lender requesting settlement on behalf of the borrower. Upon a payment request by the borrower, the loan servicer must prepare the correct payment figures and ensure that the payment letter is sent to the borrower or the borrower’s power of attorney within seven days of the payment request . The loan servicer will indicate the date the loan payment will be due, and if that date passes, additional daily mortgage interest will accrue. There are fees and costs in paying a mortgage. In addition to the final payment of principal and interest, borrowers will be required to pay recording fees to the county recorder’s office to release the mortgage lien from the title of the property. The mortgage lender may also have additional fees and costs, such as processing fees, wire transfer fees, unpaid fees, as well as late fees, if applicable.

Release of security deposits when you pay your mortgage

There are other tasks required by the mortgage servicer when you pay off your mortgage. Most borrowers will have an escrow account with their loan servicing company. When you pay off your mortgage, the escrow account must also be closed. One of the mortgage servicer’s jobs is to escrow property taxes and homeowner’s insurance and pay them when due. Since the loan servicer will no longer be servicing your mortgage loan, they will need to close your escrow account and reimburse you for any remaining funds in your escrow account within 20 days after your loan is paid off and you will need to zero out and close your escrow account. Be sure to get confirmation of your escrow account closing and check with your homeowners insurance company and county property tax division to make sure they have the correct address to send you future insurance bills and property tax bills. due. Get the proper due dates so you don’t fall behind and be charged a late fee or risk your home being uninsured. Automatic online payment setups are a great way to make sure your bills are paid on time, but make sure you have enough funds in your bank accounts.

When do you get clear and clear title to your home?

Many homeowners think that just because the loan servicer shows a statement with a zero balance on your mortgage, you own your home freely and clearly. This is not the case. You will only have clear and clear title to your home when the release application is filed by the county recorder’s office. This can take anywhere from a few days to several weeks. You officially own your home free and clear when you physically obtain a copy of the release showing the date recorded as well as the identification document number from the county recorder’s office. There are several ways to gain possession of this release. You can have it mailed to you or you may have the option to pick it up at the county recorder’s office.

When you contact your homeowner’s insurance company to let them know you’ve paid off your mortgage, be sure to tell the insurance company that the loan servicer is no longer the additional insured and ask them to remove your name from the insurance policy. homeowner’s insurance. Your homeowner’s insurance company may request a copy of your recorded release application as well as a copy of your deed.