Whether you aggressively paid down your mortgage to become debt-free or you’ve reached the end of your 15 or 30-year term – congratulations! Now the phrase, “owning a home,” is true. After you’ve cut the celebratory cake, you’re probably thinking, what’s next?
You’ve just eliminated one of your biggest monthly expenses, but there are a few housekeeping items you may want to take care. We’ll then discuss a few fun things you can do to celebrate.
First things first – paperwork.
After you’ve scheduled or mailed in your last mortgage payment, you will want to contact your lender to make sure that your deed is being transferred to you and that the transfer is being recorded with the county where the property is located. Your lender should have a process put in place to have these taken care of, but never a bad idea to make sure it’s being done.
Miscellaneous expenses – homeowner’s insurance and property taxes.
If your mortgage is rolled into an escrow, it is likely that your property taxes and homeowner’s insurance fees are also included. After your mortgage is paid off, your lender will release any remaining funds in your escrow account and you will then be responsible for managing the payments for homeowner’s insurance and property taxes. You will also want to ensure that your lender is no longer listed as a party with ownership interest on your insurance policy for the home.
Now for the fun stuff.
Give your front door an updated look by painting it red! In Scotland, a red door signifies that the homeowner has paid off their mortgage. With the extra money that you’ll have in your pocket without a mortgage payment could also allow for other renovation projects around the house.
Paying off your mortgage is a huge accomplishment. We congratulate you on this huge milestone and hope you enjoy this true sense of homeownership for many years to come.