What a wonderful feeling! Freedom, light, and happy, as you make that last mortgage payment and realize you now own your house outright! Free and Clear! Done! All that work and effort and you have reached that moment where you really do own your home! Congratulations!
A client asked me this morning, “now what?” I laughed a little and suggested a vacation, or a home improvement project, or perhaps, at least a happy dance…”noooo” she said, “I mean, what do I need to do??” And she is right! There are some things that you really need to do when you have paid off the debt on your home.
- Ask Lender to send a “Letter of Reconveyance” to the Recorder’s office to remove the lien. Get a copy of the letter for your records, and hold on to that copy.
- Call the insurance company and remove Lender from your policy as “loss payee”. Have the insurance company send all future bills directly to you. (This is an excellent time to re evaluate if you have enough insurance to rebuild your home and evaluate that policy)
- Call your Lender and ask for an updated accounting of your escrow impound account and get a refund for any savings.
- Call your Assessor’s office and have them send future bills to you directly, as your lender will no longer be paying this bill. Also make sure they are paid to date.
- DO A HAPPY DANCE!
Think your home is too big? Think you want to use your equity to buy another property?
Call your favorite RealtorⓇ to discuss market value, downsizing or relocating, and take advantage of some property tax benefits that may be available to you if you are over 55.
And definitely do a happy dance!