Steps To Take Once Your Mortgage Is Paid In Full
- Posted on: Mar 29 2022
Now that you have your home paid in full, you will probably have more money than you know what to do with. However, the good part is that you will no longer be worried about making a payment or having any threats against you, such as foreclosure. Of course, you will need to continue paying yearly property tax, but you will also be able to enjoy some great benefits that are also associated with having no mortgage.
Save all of the Mortgage Papers
After you have made your final mortgage payment, it is a good idea to save your mortgage paper. Keep the documents in a safe along with the policy for the title insurance. This safeguarding may come in handy when the home gets sold. Ensure to maintain the closing documents if any tax issues come up. Having the settlement statement will also be essential to determine any cost basis stemming from taxes on capital gains.
Verify The Home´s Discharge
It is essential to know if your home´s discharge was completed correctly before filing. You can easily verify this online through your county assessor or use the title deed to search on your own.
Be aware that once your home is fully paid for, your lender may mail you the deed for you to file. Before filing, though, ensure that it is recorded with your county assessor.
Tax Payments and Homeowners Insurance Responsibilities
Although your home is paid off, you may choose to keep your homeowners insurance. Just make sure that you don´t forget about it because it is combined with the mortgage payment. This also goes for your yearly property tax that gets paid. Your property taxes can usually be made online or in person through the county assessor.
Making Investments with the Extra Money
You may have more time and opportunities to invest the amount you were paying. Your options for investing are huge, and you can decide what you need to invest in, whether it is investing for your grandchildren´s future education or the desire to make a nice nest egg for retirement. The choice is yours.
Contemplate a Second Mortgage
Although you may not think of this as a good thing, it is an excellent way to help free extra capital for investment purposes. You will also love having the interest deductible for tax purposes. Just keep in mind that the investments need to supply a high return rate in order for the investments to be successful. Not only that, but the tax codes often change, so you need to keep an eye on the amount of interest deduction you can have for the mortgage.
Conclusion
Having a fully paid home is a great experience and an excellent achievement to make. When you take the above steps, you will make even more financial gains than before. In order to learn more about enjoying a home free and clear, then contact us today!
Posted in: Real Estate Law, Uncategorized
