Yeah, I’ve finally paid off my home mortgage! Now what?
Sending that final check to your mortgage lender is reason for celebration. But paying off your mortgage loan doesn’t end your financial duties as a homeowner.
Here are eight things you should do after paying off your mortgage:
- Get a “satisfaction of mortgage” statement. You should receive this proof from your lender that you’ve paid off your loan after you make your last payment
- Be sure your mortgage papers are filed. Most lenders will file the statement, but some won’t. Call your lender to ask.
- Follow the lender’s rules if you’re paying off the loan early. Retiring your mortgage prematurely can be more complicated than you think. Call your lender to learn the rules before sending in enough money to pay off your loan early.
- Cancel the automatic deduction plan. Make sure your bank has turned off this option once you’ve paid off the loan.
- Ensure that your homeowner’s insurance and property taxes will continue getting paid. Contact your homeowner’s insurance company and taxing authority to let them know, so they can begin sending these bills directly to you and you can start paying them yourself.
- Be sure your escrow balance is returned.
- Ask your homeowner’s insurer whether you should change your coverage.
- Figure out what to do with the money that would’ve gone to pay your mortgage!! This might be the most important consideration of all after you retire your home loan. I recommend that you immediately start depositing the equivalent of your former mortgage payments into an investment account to help make your retirement years better.