Paying off your mortgage usually occurs from either refinancing your home or having someone purchase it. It can also occur if you make timely payments over the course of the loan life and or make additional principle payments.If you are paying off your mortgage by refinancing, make sure you get a satisfaction of mortgage statement for your records.
When paying off your mortgage be sure to review if you have a pre-payment penalty in place. In your loan documents you can see what that penalty will be and what percentage of the loan amount being paid will trigger that penalty.
Before paying off your mortgage, make sure you understand what that will do to your taxes. Be sure to consult with a tax professional or your trusted mortgage professional. You may be better off refinancing or keeping your current mortgage for tax reasons.
When refinancing and paying off your current mortgage loan, remember that your mortgage balance and mortgage payoff are 2 different numbers. Be sure to allow for 30 days interest to be figured into your payoff.
