What does a payoff statement include?

The payoff letter lists the final payment amount, including interest and fees like the county recording fee and statement fee. The fee amounts depend on state and local laws and regulations, along with how many times a payoff quote was requested. Your lender might also enforce a prepayment penalty, which will be listed with other lender fees.

How do I make my final mortgage payment?

Along with the final payoff, the payoff letter will have a good-through date. This means the total amount you need to pay off is only good through that date. Additional interest accrues after that date. If you pass the good-through date without payment, you must request an updated payoff letter.

Should I pay off my mortgage early?

Whether it’s best to pay off a mortgage early depends entirely on the homeowner and their unique financial situation. There are great benefits in the long run, the biggest being no longer having a mortgage. But if you’re going to be strapped for cash by making extra payments or refinancing to a shorter loan term, an early mortgage payoff may not be right for you.

How do I get my escrow refund?

If there’s money left in your escrow account after you’ve paid off your mortgage and/or you overpaid the loan (by paying before the good-through date, for example), the extra money will be sent back to you.If you’re refinancing with Rocket Mortgage, we may net your escrow. This means we’ll take whatever money is left in your escrow account and apply it toward your payoff amount.Again, this will depend on your loan type. Read the fine print on your loan to understand what happens when you pay off your mortgage.Sometimes the lender must hold money in your escrow account after your loan has been paid off. This is because mortgage insurance is paid at the end of the period you’re paying for instead of upfront. Your lender may hold on to some of your escrow funds to cover those last costs if you have mortgage insurance.If you are due an escrow refund on your Rocket Mortgage loan, we’ll process it within 10 – 12 business days from when we receive the payoff. You can choose to have it sent as a check or deposited directly into your bank account.

What happens after I pay off my mortgage?

After your mortgage has been paid off, it must be recorded with the county by sending what’s called the Discharge of Mortgage document. Your lender is required to write up the document, but what happens next depends on local regulations.Some states require the lender to send the document to you, while others require the lender to send it to the county. Regardless, the burden is on the lender to draw up the document, but it’s on you to make sure it’s sent to your county’s Registry of Deeds.Contact your lender to find out what your state requires for the Discharge of Mortgage and to get answers to other questions about your loan.

What are my ongoing monthly expenses?

Paying off your mortgage is no small feat, and it changes the way you’ll financially maintain ownership of your home. Lenders will often consolidate property taxes and homeowners insurance fees into your monthly payment through the escrow account. Once your relationship with the lender is dissolved, you’ll start making those payments yourself.If your lender required homeowners insurance, you’re no longer under the obligations of the loan, so you can opt out. Of course, homeowners insurance is a financial safeguard against damage to your property in case of natural disasters, accidents, robberies and more, so it’s a good idea to keep it. To do so, contact your insurance provider to remove your lender’s payment information and set up your own auto pay.For the lifespan of your mortgage, you’ve paid property taxes in monthly installments. Then, the lender pays the lump sum annually or semi-annually to relevant tax authorities.Now, you’ll pay your local tax office directly. Don’t be surprised if you receive a large bill in the mail. It’s easy enough to estimate and save for your property tax payment.

How To Pay Off Your Mortgage Early