Paying Off Your Mortgage: What’s Next?

Are you *this* close to making your final mortgage payment? Congratulations! 

Housing is easily the most expensive part of every family’s monthly budget — in fact, it takes up an average of 16% of the ENTIRE budget, with many Metro Detroit homeowners dedicating over a quarter of their monthly spend to it.

That’s why it’s so exciting when you finish paying off your home! But what next? 

There is a little bit of paperwork involved to close out your loan, and you want to make sure everything is done in a timely fashion. Here are some steps you should take after you send that last mortgage payment: 

File a Satisfaction of Mortgage Statement  

After you pay off your mortgage, the mortgage lender should send you a Satisfaction of Mortgage Statement. If it hasn’t been received after a month, call them to see what’s going on. This document will need to be filed with the county clerk. 

Cancel Automatic Payments 

Make sure to cancel automatic mortgage payments so that they don’t keep coming out of your account AFTER the loan has been paid off! Although any extra payments should be returned by your lender eventually, this can be a hassle and take several months. 

Notify Insurance and Taxing Authority 

Paying off your mortgage will close your escrow account. However, most homeowners are paying their insurance and property taxes through escrow. Once your loan is paid off, you’ll be responsible for paying for your insurance and taxes directly. Be sure to call and update your homeowner’s insurance company and property tax agency so they know to send future bills to you, not your mortgage company. 

Hope that helps! 

Of course, another way to pay off your mortgage early is to downsize. If you’re considering trading in your Southeast Michigan home for something smaller, give Mitten Made Properties a call at (248) 883-3340. We can make you a fair cash offer on your Metro Detroit house and close in as little as two weeks! 

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