Plan a sinking fund for your homeowner’s insurance and your property taxes in your monthly budget. Tracking your spending and saving is even more important now that you're mortgage free! This may sound silly, but based on some comments we've gotten on this article, it can happen! When it comes to your money, triple checking can make a big difference. Sign in to your online account and ensure you’re all set. If you don’t cancel your automatic mortgage payment for the upcoming month, you may accidentally pay more than you intended. Our township had a convenient online payment system that was pretty impressive for a government website! The Hill Family at the bank paying off their mortgage early! 7. Touch base with your city offices and let them know that you’ve paid off your mortgage and you will now be making your property tax payments. Just like the homeowner’s insurance, your property taxes were paid through escrow as well. Reach out to your homeowner’s insurance provider and let them know that you’ve paid off your mortgage and you’ll be making the payments going forward.Īsk them about automatic billing options so that you don’t accidentally miss this important payment each year. For us, this was an opportunity for us to maximize our travel rewards earnings by putting our annual insurance payment on our credit card instead of paying through escrow. Now that you don’t have an escrow account anymore, you’ll need to pay your homeowner’s insurance going forward. Contact Your Homeowner’s Insurance Provider For us, we received a check for around $2,000 two weeks after we paid off the loan.ĭon’t go spending this money now! You’re going to need it to pay these bills manually now. Inquire About Your Escrow Balanceĭepending on when you pay off the loan, you will more than likely have an escrow balance containing funds for future payments to your homeowner’s insurance and property taxes.Īsk your mortgage company about your escrow current balance and how much you’ll be receiving back. I never thought I'd like the number zero so much. When we got home from the bank, I checked online and it had a lovely $0 balance. We went to our local bank and requested a wire transfer. For us, we had the choice of either a certified check or a wire transfer. Mortgage companies may not accept a regular online payment or a personal check for the final payment. Obtain a Certified Check or Request a Wire Transfer Our Mortgage Payoff Statement with $30 Statement Fee and a $14 Recording Fee 3. Here's the mortgage payoff statement I received from my provider “Freedom Mortgage”. One last poke in the side from the mortgage company before they grant your freedom! For us, we had to pay a $30 “statement fee” and a $14 “recording fee”. Pay the Mortgage Payoff Statement Feesĭepending on your state, there may be extra fees included in paying off your mortgage. For reference, we made this phone call at the beginning of the month and set our “Pay Off Good Through Date” for the end of the month. This essentially means that you’ll need to send in your final payment prior to this date to not incur further interest charges. Our rep was helpful and congratulated us on the big moment in our lives, but I could tell she wasn’t doing a happy dance like I was.ĭuring your phone conversation, you’ll choose a “Pay Off Good Through Date”. Make this a fun moment for yourself! This is the first time you get to say to someone from your mortgage company, “We’d like to pay off our mortgage today!”ĭon’t be surprised if the representative isn’t as enthusiastic as you are about it. Nope! Evidently, you need to call your mortgage company and verbally request a “ mortgage payoff statement”.Ī mortgage payoff statement is a document that details your loan balance – how much you owe on your mortgage. I thought we could just send in the last mortgage payment and we’d be all set.
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