What documents do you get when you pay off your mortgage?
Paying off your mortgage is a monumental financial achievement. After years of payments, you've finally reached the summit. But what happens next? The administrative process of officially closing out your loan and securing your home's documentation can be confusing. This guide provides a clear, comprehensive checklist of the critical documents you will receive and the essential steps you need to take after making that final mortgage payment.
Table of contents
Key Documents to Expect After Mortgage Payoff
Once your mortgage balance hits zero, your lender is legally required to take specific actions to release their lien on your property and provide you with the necessary documentation. While the exact names of these documents can vary by state and lender, you should expect to receive the following core items.
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Mortgage Payoff Letter / Final Statement
This is the first official confirmation from your lender that the loan has been paid in full. It will show a zero balance and detail the final payment that cleared. It serves as your initial proof of payment until the more formal legal documents arrive.
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Canceled Promissory Note
The promissory note is the original document you signed agreeing to repay the loan. Upon payoff, the lender will mark it as "Paid in Full" or "Canceled" and return it to you. This is a critical document, as it legally nullifies your original debt obligation.
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Deed of Reconveyance / Satisfaction of Mortgage
This is the most important document you will receive. It is a legal instrument that officially releases the lender's lien from your property. The lender prepares this document and sends it to your county recorder's office to be officially recorded in the public record. The name varies by state; it may be called a Deed of Reconveyance, Satisfaction of Mortgage, or Lien Release. Once recorded, it proves you own your home free and clear.
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Escrow Overage Refund Check
If you had an escrow account for property taxes and homeowner's insurance, your lender will conduct a final analysis and refund any remaining balance. This check will be mailed to you separately after the account is closed out.
Important
The Deed of Reconveyance or Satisfaction of Mortgage is recorded at the county level, not handed to you directly. It can take 30 to 90 days to process. Verify the recording yourself by checking your county recorder's website after that window has passed.
Your Post-Mortgage Payoff Checklist
Receiving the documents is just the first step. As a homeowner, you now have new responsibilities. Follow this checklist to ensure a smooth transition.
- Confirm Lien Release Recording: Your lender is responsible for recording the lien release, but it is wise to verify it yourself. You can typically check your county recorder's office website or call them a few weeks after receiving your payoff confirmation.
- Obtain a Copy of Your Property Deed: While your lender provides the lien release, they do not hold your property deed. You should already have a copy from when you purchased the home. If you cannot find it, you can request a certified copy from your county recorder's office.
- Cancel Automatic Payments: If you used a bill pay service from another bank to send mortgage payments, you must cancel those payments yourself. Your primary lender will cancel any auto-pay set up directly with them.
- Take Over Property Tax Payments: Your lender will no longer pay property taxes on your behalf. Contact your local tax assessor's office to find out how and when to start making payments directly.
- Take Over Homeowner's Insurance Payments: Similarly, you are now responsible for paying your homeowner's insurance premiums directly to your provider. Contact your insurance agent to update your payment method.
- Store Your Documents Securely: Keep all these new documents—especially the recorded lien release and your property deed—in a safe and secure location, such as a fireproof safe or a safe deposit box. Consider using a digital home management platform like DomiDocs to store digital copies for easy access and protection against loss. With no lender monitoring the title, homes that are owned outright are prime targets for title theft; proactive monitoring becomes essential.
Frequently Asked Questions
How long does it take to get mortgage payoff documents?
The timeline can vary significantly by lender and county. You should receive the initial payoff letter within a week or two. The recorded lien release can take anywhere from 30 to 90 days, as it depends on the processing times at your county recorder's office.
What is the difference between a deed and a title?
A deed is the legal, physical document that transfers ownership of a property. A title, on the other hand, is a legal concept that refers to your right to own and use the property. The deed is the proof of the title.1
What if I don't receive my lien release?
If it has been more than 90 days and you have not received confirmation that the lien has been released, contact your lender immediately. Follow up with your county recorder's office to see if there has been a delay in processing.
Do I get the deed to my house when I pay off my mortgage?
You were already on the deed when you purchased the home. The lender held a lien against your property as security for the loan. When you pay off the mortgage, the lender releases that lien by recording a Deed of Reconveyance or Satisfaction of Mortgage. You do not receive a new deed; instead, the lien is simply removed from the existing public record of your ownership.
What should I do with my mortgage payoff documents?
Store them in a secure, accessible location. Physical originals should go in a fireproof safe or safe deposit box. It is also highly advisable to create digital backups. A homeowner document management platform like DomiDocs is designed specifically to help homeowners organize, store, and protect critical property documents like these.
Protect Your Paid-Off Home from Title Fraud
Now that your home is paid off, the title is no longer monitored by a lender, making it a more attractive target for deed fraud. HomeLock by DomiDocs provides address-based monitoring of your property’s title and alerts you to suspicious activity, offering a critical layer of security for your most valuable asset.
Sources
- Freedom Mortgage. (n.d.). Deed vs. Title: Key Differences. Retrieved from https://www.freedommortgage.com/learning-center/articles/deed-vs-title