Mortgage almost paid off

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Cpadave
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Joined: Wed Nov 22, 2017 11:53 am

Mortgage almost paid off

Post by Cpadave »

I am very excited be almost done with our mortgage. I have $10K balance left on mortgage since I made additional principal payment during the year. And my monthly mortgage is about 7K each month. What would happen in the month two? Would the bank take partial withdrawal (automatic withdrawal agreement )? Would they take two $7K payments and stop taking additional payments and refund the overdraft? Thank You for the help.
alrick
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Re: Mortgage almost paid off

Post by alrick »

Make the first month's payment, then contact the bank and ask for the payoff amount for the specific day you want to clear the balance
Silk McCue
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Re: Mortgage almost paid off

Post by Silk McCue »

Congratulations on paying off the mortgage. Call the bank this morning and ask them how this will be handed. If you want, you could ask for a payoff amount and arrange to pay it off now.

Cheers
Topic Author
Cpadave
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Re: Mortgage almost paid off

Post by Cpadave »

Thanks for the reply. I was hoping to avoid going through with the payoff procedure. I had to do that once and pay them an exact amount by certain day and pay additional fee. I don't mind of they take too much in the second month as long as they automatically stop additional monthly withdraw and eventually pay back the overpayment from the second payment.
lotusflower
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Re: Mortgage almost paid off

Post by lotusflower »

I've never paid down a mortgage, but I've never heard of a bank taking an automated payment that exceeded the principal+interest owed.
student
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Re: Mortgage almost paid off

Post by student »

Congratulations.
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mmmodem
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Re: Mortgage almost paid off

Post by mmmodem »

There were no additional fees for me. As you have already outlined. The bank estimates an amount. It's always a payoff date far into the month with interest. I pay it and they refund me the extra interest paid because they receive my payment earlier than the estimate.
Topic Author
Cpadave
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Re: Mortgage almost paid off

Post by Cpadave »

Thanks. I will contact them about the payoff amount and other concerns.
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djpeteski
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Re: Mortgage almost paid off

Post by djpeteski »

Well done sir!

When we did it, we just went into the bank and wrote a check for the final amount. Dinner at a nice steak house followed.

Celebrate your accomplishment would be my suggestion.
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Tycoon
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Re: Mortgage almost paid off

Post by Tycoon »

Congratulations. Posts like this one always make me smile.
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Jack FFR1846
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Re: Mortgage almost paid off

Post by Jack FFR1846 »

Get ready to take out your check book and write out a $0 check to the bank once it's paid off. It's pretty fun to do that laughing hysterically.

What I did.....I received a windfall and owed $70k and change. I sent in one payment of $70k, waited for the next month, then sent in $100, knowing it was over what was owed. The bank sent me my payoff notice and a check for the overpayment.
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rich126
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Re: Mortgage almost paid off

Post by rich126 »

I've always been on the fence as to whether it is a good idea for most people to pay off a mortgage but I'm sure the relief of not having one is great. And to, kind of, contradict myself, my house will likely be paid off in about 24 months (about 2 years prior to retirement).
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stickman731
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Re: Mortgage almost paid off

Post by stickman731 »

Cpadave wrote: Thu May 23, 2019 6:43 am Thanks for the reply. I was hoping to avoid going through with the payoff procedure. I had to do that once and pay them an exact amount by certain day and pay additional fee. I don't mind of they take too much in the second month as long as they automatically stop additional monthly withdraw and eventually pay back the overpayment from the second payment.
I would just go with the payoff procedure to be sure, but I would not expect the mortgage holder and/or your bank to withdraw more monies then needed. Also make sure you contact you municipality tax office after you have paid it off and ask what paper work is required; may sure that taxes are send to you and not the mortgage holder. You want to avoid any late fees.

Lastly, congratulations - for me it gave me great relief and satisfaction to have paid my mortgage off - 8 years ago this month.
nexesn
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Re: Mortgage almost paid off

Post by nexesn »

Congratulations!
tdmp
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Re: Mortgage almost paid off

Post by tdmp »

congratulations!
rashad3000
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Re: Mortgage almost paid off

Post by rashad3000 »

Congratulations! I can't wait to get here myself!
Rus In Urbe
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Re: Mortgage almost paid off

Post by Rus In Urbe »

Well done sir!

When we did it, we just went into the bank and wrote a check for the final amount. Dinner at a nice steak house followed.

Celebrate your accomplishment would be my suggestion.
CONGRATULATIONS! That is what we did with our last mortgage a decade ago----it felt great. :sharebeer :sharebeer :sharebeer
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EdNorton
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Re: Mortgage almost paid off

Post by EdNorton »

I figured out to the penny what I owed on my final payment and rounded up to the next dollar. The bank sent me a check for 67 cents which I kept and keep it displayed in my den.

:sharebeer
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flyphotoguy
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Re: Mortgage almost paid off

Post by flyphotoguy »

Cpadave wrote: Thu May 23, 2019 6:33 am I am very excited be almost done with our mortgage. I have $10K balance left on mortgage since I made additional principal payment during the year. And my monthly mortgage is about 7K each month. What would happen in the month two? Would the bank take partial withdrawal (automatic withdrawal agreement )? Would they take two $7K payments and stop taking additional payments and refund the overdraft? Thank You for the help.
Congratulation!!! If you don't do anything the software they're using should trigger something when it's the last payment to start the paperworks for the completion of the loan OR you can contact them for the payoff amount and someone can process that for you. Cheers!!! :sharebeer :sharebeer
cableguy
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Re: Mortgage almost paid off

Post by cableguy »

Congrats! Its a great feeling.
autolycus
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Re: Mortgage almost paid off

Post by autolycus »

stickman731 wrote: Thu May 23, 2019 7:47 am I would just go with the payoff procedure to be sure, but I would not expect the mortgage holder and/or your bank to withdraw more monies then needed. Also make sure you contact you municipality tax office after you have paid it off and ask what paper work is required; may sure that taxes are send to you and not the mortgage holder. You want to avoid any late fees.
And make sure to change the insurance policy's beneficiaries to remove the mortgage holder.
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whodidntante
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Re: Mortgage almost paid off

Post by whodidntante »

Rates are really low right now. It's a great time for a cash out refi! :twisted:
fittan
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Re: Mortgage almost paid off

Post by fittan »

And don't forget to call your town assessor office. Make sure you receive paper statement for your property tax bill. If your town has online bill pay, it is quite easy to pay your property tax every quarter online.
boomer_techie
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Re: Mortgage almost paid off

Post by boomer_techie »

EdNorton wrote: Thu May 23, 2019 8:56 am I figured out to the penny what I owed on my final payment and rounded up to the next dollar. The bank sent me a check for 67 cents which I kept and keep it displayed in my den.
I too had it figured out to the penny. However, I asked the bank and they specified a number about $1 higher. Doing the math, I figured out they had calculated one extra day's worth of interest. Not wanting to deal with the cost of long distance phone calls, I paid the higher amount. Some months after the pay off, they sent me a check for the $1. I cashed it.

.
.
.
Then many months later (maybe the next January?), they sent a check for one single penny - the interest my dollar had "earned". :shock: I did not cash this.
UKFred
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Re: Mortgage almost paid off

Post by UKFred »

First of all, congrats. In the UK, you are generally advised to leave a small amount outstanding on the mortgage (say £100). The bank then continues holding the deeds because you haven't paid off the mortgage. Secure storage for a tiny amount of interest. Is that not something followed in the US?
Silk McCue
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Re: Mortgage almost paid off

Post by Silk McCue »

UKFred wrote: Fri May 24, 2019 12:50 am First of all, congrats. In the UK, you are generally advised to leave a small amount outstanding on the mortgage (say £100). The bank then continues holding the deeds because you haven't paid off the mortgage. Secure storage for a tiny amount of interest. Is that not something followed in the US?
That isn't a thing here. No matter how much you pay in advance as additional principal, the fixed amortized payment is due the next month, or the portion thereof if the balance has been reduced below the fixed amortized amount.

Cheers
lomarica01
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Re: Mortgage almost paid off

Post by lomarica01 »

WOW your monthly cash flow will being going thru the roof an extra $7000 per month if I understand correctly what are you going to do with it?

btw when I got ready for my last payment I just contacted the lender and they gave me the payoff amount no big deal

congrats
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JoeRetire
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Re: Mortgage almost paid off

Post by JoeRetire »

Cpadave wrote: Thu May 23, 2019 6:33 am I am very excited be almost done with our mortgage.
Nice.
I have $10K balance left on mortgage since I made additional principal payment during the year. And my monthly mortgage is about 7K each month. What would happen in the month two? Would the bank take partial withdrawal (automatic withdrawal agreement )? Would they take two $7K payments and stop taking additional payments and refund the overdraft?
Your bank will send you instructions on the final payoff amount. They don't want to deal with a refund of overpayments.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
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JoeRetire
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Re: Mortgage almost paid off

Post by JoeRetire »

fittan wrote: Thu May 23, 2019 3:16 pm And don't forget to call your town assessor office. Make sure you receive paper statement for your property tax bill. If your town has online bill pay, it is quite easy to pay your property tax every quarter online.
This assumes the tax bill was being collected via escrow before. That's not always the case.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
bgf
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Re: Mortgage almost paid off

Post by bgf »

JoeRetire wrote: Fri May 24, 2019 2:04 pm
fittan wrote: Thu May 23, 2019 3:16 pm And don't forget to call your town assessor office. Make sure you receive paper statement for your property tax bill. If your town has online bill pay, it is quite easy to pay your property tax every quarter online.
This assumes the tax bill was being collected via escrow before. That's not always the case.
indeed i got tired of the mortgage company jacking up my escrow payments for no reason and holding extra so i closed the escrow account and pay taxes myself. i prefer it this way.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
boomer_techie
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Re: Mortgage almost paid off

Post by boomer_techie »

UKFred wrote: Fri May 24, 2019 12:50 am In the UK, you are generally advised to leave a small amount outstanding on the mortgage (say £100). The bank then continues holding the deeds because you haven't paid off the mortgage. Secure storage for a tiny amount of interest. Is that not something followed in the US?
In the US, the deed will generally be recorded in a "book" held by some unit of government. (For me this is the county government building which is paradoxically located in the biggest city in the county even though the county doesn't control the city.) As the owner, you'll get some sort of paper document which may have interesting stamps on it, but it is hardly a be all end all legal document. Mostly it is just a short cut for future transactions - you won't have to pay someone to search through all the deeds recorded with the government. So - nothing that needs secure storage.
UKFred
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Re: Mortgage almost paid off

Post by UKFred »

boomer_techie wrote: Fri May 24, 2019 9:35 pm In the US, the deed will generally be recorded in a "book" held by some unit of government. (For me this is the county government building which is paradoxically located in the biggest city in the county even though the county doesn't control the city.) As the owner, you'll get some sort of paper document which may have interesting stamps on it, but it is hardly a be all end all legal document. Mostly it is just a short cut for future transactions - you won't have to pay someone to search through all the deeds recorded with the government. So - nothing that needs secure storage.
Her Majesty's Land Registry does that job in the UK. You can always get a copy of the registered deed from them, but it saves some trouble and expense if the original deed is safely stored somewhere and a bank is about as safe as it gets, for a tiny bit of interest each month.

Actually, I paid off my mortgage but left the facility open, so I don't pay anything at all and they still hold on to my deeds. The mortgage account is now just a giant instant access emergency fund that I can dip into should it become necessary and I don't want to sell my investments.
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