Don't do it if you have other debt to pay off, don't do it if you can't handle the psychological toll of leveraged investments and an ongoing payment, etc., but a paid off mortgage is just a dead asset that's not working for you to its full potential. Of course that's an "advanced" PF strategy. I'd probably be willing to do it at any rate <5%. But if you could go back in time a year and borrow near 3%, the financially optimal move for a young person (OP seems to be in their 30s) is to refinance and invest. Well.maybe don't do that today with rates pushing 7%. EDIT: and really, if you aren't already maxing tax-advantaged accounts, I'd argue you have no business paying off your mortgage early-that extra money is better placed in a 401k/IRA than paying off principal. No sense wasting the free leverage! If you aren't already maxing out tax-sheltered accounts, use that equity to get there and/or take a smaller loan such that you can max 401k/ira. Well if you really want to optimize this personal-finance nerd style.the right answer is to replace it with a new mortgage!ĭo a cash-out re-fi, turn ~half of that equity back into usable money, and invest it in a balanced portfolio of index funds. If you can, keep saving & investing your mortgage payment. If your mortgage is on auto-pay, after last payment made, turn off auto-pay. If you monitor your credit (credit karma) or pay to monitor your credit, you’ll begin receiving emails there’s been a change in your credit reports. The bank will also update your credit reports reflecting mortgage paid off. Might take longer due to backlog in register of deeds offices due to covid-19. It usually takes 30-60 days for bank to receive recorded document from register of deeds office and to mail you the documents. The Note will be stamped paid in full, dated and signed by bank official. Banks typically mail the recorded Satisfaction document along with the original promissory note and recorded mortgage to you. Upon recordation of the document, the lien on your home is terminated. The bank will prepare a Satisfaction of Mortgage document and mail to your county register of deeds for recordation. This is also a good time to shop around for home and auto insurance elsewhere, to see if you can realize any savings.Ĭongrats OP on paying off your home! No dumb questions. The insurer will take the lender off the policy as a lienholder, and arrange for you to start receiving the bills for the insurance premiums. You will also need to take a copy of the lien release to your homeowner's insurer. You will also need to take a copy of the lien release to your county's property tax office, to arrange for the property tax bills to be sent to you instead of your lender's servicer. You will need to file the lien release with your county recorder's office it becomes part of your home's title. You may also get the original signed Note (loan document) stamped PAID IN FULL. It will be different from your monthly payment, sometimes significantly.Ī few weeks later you should get a lien release from the lender in the mail. Call the lender when you are ready to make the last payment and ask for a payoff amount. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit.Ĭancel your last autopayment. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.I hold small mortgage onhouse, mortgagor tried to pay off, and i had offered them mult. Couldn't sell after being off market until 9 mo after 40k loss.Ĥ. house been off market over a month, I mediated no penny offered. I sold a house under full, not asis, contract 7 yrs ago- buyer did not cancel, nor pay 10 k deposit, just bought other house. 10k deposit- can u send me lit cases that inspection IS requiredģ. buyer backed out of standard FL asis, stating found a better house, after doing what can be disputed as a personal inspection but buyer signed contract after insp. I put lis on his IL house but he sold it. contract w deed transfer, he owes me 125k from that contract plus all repairs, aove attn. partner lived w me paid close to nothing though he made not. Now want 25k legal fees before any trial. HOA sued me over light, put lis pendens though they are not a bank. Unfortunately, actions have been filed against me. 4 cases/200k dom partner case/4mortgage complaint.
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