As an Orange County Homeowner one of the most exciting times in life is when you get the opportunity to pay off your homes mortgage. For some homeowners this happens sooner, rather than later but the reality about paying off a mortgage is that even though it’s a step towards financial freedom, there are a four key things that a homeowner must know before moving in this direction.
The First Thing To Expect
Step one to paying off your mortgage, regardless if your mortgage is from a bank, credit union or mortgage broker is to get a release or satisfaction form; either of these documents are written confirmation that you paid off your mortgage in full.
How Much Is Really Due?
Before moving forward with paying off your mortgage make sure to contact your bank or lender and obtain a payoff statement. This document will include other information as well like “pier-diem” interest since interest typically accumulates on a daily basis and as a borrower, you are required to pay the lender the total amount due, including interest, up to your pay off date.
Always Be On The Safe Side
As a borrower it’s good to be on the safe side and send a payment to your lender that includes a little more interest than what’s due, just so you can be on the “safe side” with your lender; if you overpay, your lender will always refund the overage at a later date. If you do end up overpaying, you can request the overage from the mortgage holder to settle the account and receive a copy of your mortgage statement.
Communicate With Your Lender
As an Orange County homeowner, you should communicate with your lender and let them know their intentions. Not every lender will send the borrower a promissory note or deed of trust that’s marked as having been paid in full or canceled.
To learn more tips that you should know before paying off your homes mortgage, contact Fred Sed & Associates today by calling or texting (949) 272-0125.