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Thinking about Mortgage Payoff

April 16th, 2017 at 03:49 pm

I am starting to think about paying off our house, and so I looked up some info on the internet.

Here's what I found:
- If you ask for a payoff amount, they charge you a fee! Well, I won't need a payoff amount - I'm just going to pay until it's done. There may be $20 or so that they owe me back.
- They charge you to record the payoff with the County - so I am going to check with the County and see what that recording fee is

I asked my bank (which is a smallish local bank) if I could meet with a loan officer about our impending payoff (probably 4 or 5 months off) and the woman said I couldn't make an appointment, that they would need to contact me. She asked if our loan was there (um, yes, otherwise why would I want to talk to them?). Then she said "So this is a refi," and I realized that she misunderstood and thought I wanted a new loan. I explained that I didn't want a new loan, that I was going to pay off our mortgage in full in a couple of months. And she looked at me blankly. But she took down my info and said someone would contact me to make an appointment.

Do you think someone will contact me? I don't. But I have a couple of months to work on this and find out what happens next.

For those of you who have paid off your mortgage (and I know it's different in different states) how does this work? Do I cancel my automatic payments? What were the fees?

I can't even ask my parents because they still have a mortgage. I have two friends whose mortgages are paid off, so I'm going to ask them how it worked. I like to know ahead of time.

PS - paid off another $75 from the gym payment for this month, so we now owe $10,600.

9 Responses to “Thinking about Mortgage Payoff”

  1. AnotherReader Says:

    It depends on who actually owns the loan (most likely Fannie Mae or Freddie Mac) and your loan servicer's policy. If you make the pay-off payment, you will likely be charged for the pay-off quote and any fees the servicer incurs, including recording the release of lien at the recorder's office.

    Last time I paid off a mortgage, I think it was $30 to calculate the pay-off and $15 to record the release of lien, which was mailed to me by the recorder's office.

  2. creditcardfree Says:

    I'd pay the fees. I bet you aren't paying much interest, but I expect paying it earlier will still save at least the amount in fees. Also they may want certified funds. That it is what was required of us on a second mortgage payoff.

  3. AnotherReader Says:

    It costs about the same amount to do a wire transfer as overnighting a cashier's check. Much less likely it will get lost as well. If the servicer is the local bank, they may be able to handle the transfer directly.

  4. livingalmostlarge Says:

    That's amazing. Congrats soon!

  5. crazyliblady Says:

    Congratulations. That's amazing news. What are your plans after paying off the house and breathing a sigh of relief?

  6. snafu Says:

    Wow! you're so wonderfully close to clearing your mortgage. I hope you'll plan a special family event to celebrate. We ceremoniously burned the pages that tracked our final year of mortgage payments as we had focussed on throwing every uncommitted dollar to that goal that final year. I don't know what's included in escrow, but you need to make arrangement to seamlessly transfer those items like municipal tax, house insurance [change benefactor from mortgage holder] for example.

    I happened to be downtown, a few blocks from our provincial registration office, stopped by, picked up the registration papers. They were simple to complete, signed and witnessed by our bank's Commissioner of Oaths and shocked the clerk by hand delivering them two days after I got the receipt and documentation from the lender.

  7. PatientSaver Says:

    I did not have to pay a fee just to learn the payoff balance, but I did have to pay a rather significant fee to record the payoff. Just another way for the town/state to grab some of your money, IMO.

    Congrats!

  8. crazyliblady Says:

    I was just looking at your sidebar and noticed that at the beginning of 2017, your mortgage was over $18K and now it is over $10K. I just have to ask what your secret for paying off $8K on your mortgage in the last 3 1/2 months?

  9. Buendia Says:

    Hi crazyliblady - I'm going to do a post on how we paid that off!

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