Mortgage final payment

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planetmike
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Mortgage final payment

Post by planetmike » Wed Aug 07, 2019 6:57 am

My wife and I decided to pay off the mortgage. We only owe around $2,500. When I generated the payoff letter at Wells Fargo, it said we have to wire or mail a check. It seems really odd I can't set a payment up through their online tool. I'll be calling them this afternoon to see what they say. They really don't want people to pay off their mortgages, do they?

Silk McCue
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Re: Mortgage final payment

Post by Silk McCue » Wed Aug 07, 2019 7:11 am

Congrats on paying off the mortgage.

Every business has its processes and procedures. Just mail the check and pop a cork.

Cheers

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8foot7
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Re: Mortgage final payment

Post by 8foot7 » Wed Aug 07, 2019 7:16 am

If it were me I’d take a check to a branch and pay it to them in person, get a receipt, and stop by the store for a nice bottle of wine.

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IcedDog
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Re: Mortgage final payment

Post by IcedDog » Wed Aug 07, 2019 7:31 am

Yeah, I paid off my mortgage in February and encountered something similar...they gave me a quote of what my exact payoff amount was (including interest owed to that particular day), but I couldn't pay it though the site, so I just did it via wire (paid a $20 fee through Ally), and the next day it was confirmed as paid, quick and easy. Congrats!

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Watty
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Re: Mortgage final payment

Post by Watty » Wed Aug 07, 2019 7:39 am

I would just mail them a check so that your don't get out of their normal process.

Congratulations on paying it off. :sharebeer

A few general things to do.

1) Stop any automatic payments.

2) Once it is paid off contact your insurance company to have the lender taken off the home insurance policy. You may want to get quotes for a higher deductible to see if that is worthwhile.

3) A month or two later check with your county to make sure that the mortage lien was actually taken off the property. Do this even though you will get paperwork saying it was done. The reason is that once in a blue moon there will be a glitch that will be much easier to fix now. In my county you can see the liens online so you might what to look at that now, and then again in a few months.

4) Be sure that the home insurance and property taxes are paid even if you do not get a bill. This is more of an issue if you had an escrow account.

SimonJester
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Re: Mortgage final payment

Post by SimonJester » Wed Aug 07, 2019 8:52 am

This seems to be the standard, the online site is not equipped to handle the final payoff. Your final payoff includes interest to the day of payoff and perhaps a recording fee. Even more fun WF will charge you a wire fee to wire money to itself so be prepared for that if you bank with them.

I did not want to wait for a check to arrive in the mail and risk it getting lost thus eating more interest, so I paid the wire fee and wired the payoff.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

esteen
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Re: Mortgage final payment

Post by esteen » Wed Aug 07, 2019 8:53 am

I haven't reached this point yet so I can't offer any advice.... Just a congratulations! :sharebeer

Pigeye Brewster
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Re: Mortgage final payment

Post by Pigeye Brewster » Wed Aug 07, 2019 9:14 am

planetmike wrote:
Wed Aug 07, 2019 6:57 am
When I generated the payoff letter at Wells Fargo, it said we have to wire or mail a check. It seems really odd I can't set a payment up through their online tool. I'll be calling them this afternoon to see what they say. They really don't want people to pay off their mortgages, do they?
We did this 2 or 3 weeks ago. Our mortgage servicer (not Wells Fargo) requires either a cashiers check or wire, i.e. immediately available funds. A concern on their part that a personal check or an ACH via the online tool could be not sufficient funds, I suppose.
planetmike wrote:
Wed Aug 07, 2019 6:57 am
They really don't want people to pay off their mortgages, do they?
When I called to confirm I couldn't use the online tool, the person I talked to became noticeably less friendly when I told them we were paying the loan off. Didn't bother me in the least. We were about to be debt free. :beer
Last edited by Pigeye Brewster on Wed Aug 07, 2019 10:40 am, edited 1 time in total.

Pigeye Brewster
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Re: Mortgage final payment

Post by Pigeye Brewster » Wed Aug 07, 2019 9:18 am

Watty wrote:
Wed Aug 07, 2019 7:39 am
4) Be sure that the home insurance and property taxes are paid even if you do not get a bill. This is more of an issue if you had an escrow account.
This was the case for me. Mortgage paid off 2 or 3 weeks ago with home insurance due this week. The payoff letter showed them retaining the escrow account, so I assumed the insurance premium payment was already in the works. Then on Monday of this week, a check for the escrow balance arrived.

-ryan-
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Re: Mortgage final payment

Post by -ryan- » Wed Aug 07, 2019 9:39 am

I haven't paid off my mortgage, but what I have done in the past for other loans (student loans and auto loans) that have similar instructions for payoff was simply to make an additional principal payment online that left a substantially lower balance than the regular monthly payment (like $20, for example). When the last payment rolled around the loan was automatically paid off without issue.

For other loans I have called for the 10 day payoff amount and mailed a check, which was slightly more satisfying to be honest but was a little more effort.

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CAsage
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Re: Mortgage final payment

Post by CAsage » Wed Aug 07, 2019 9:45 am

Yes, they make it strangely tricky to pay off a mortgage, but since adding principal to a payment is permitted... When we got ready to pay off our mortgage, I simply made the second-to-last planned payment a Really Big One, dropping the amount owed to maybe $100 or so. You are allowed to make the 'regular' payments via the website. Then I was able to get a final payoff amount that they accepted by check, with no additional fees. The mortgage lender was Pennymac. Maybe they fuss over that final interest? Dunno.
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Tirebiter
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Re: Mortgage final payment

Post by Tirebiter » Wed Aug 07, 2019 1:03 pm

I paid off my Wells Fargo mortgage recently, and encountered the same challenge the OP did. However, I was able to go into the branch, where they helped me arrange the final payment by wire. I told them it was unfair that I had to pay a wire fee just because their online service was unable to accommodate my payoff. They agreed to reverse it. I had to email the branch banker the following day once the wire fee was assessed, in order to get them to reverse it, but otherwise things went quite smoothly.

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FelixTheCat
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Re: Mortgage final payment

Post by FelixTheCat » Wed Aug 07, 2019 1:07 pm

There will be a final interest calculation. Go to the bank, ask how much to pay it off and transfer the funds.
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drgenefish
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Re: Mortgage final payment

Post by drgenefish » Wed Aug 07, 2019 1:41 pm

This year I paid off everything but 1 cent online and they made me mail a certified check for the final payment.

I had to include an extra like $80 for a fee for them to record it with the county. that's why they want the check.

It def made the payoff less fun and anti-climactic :)

cusetownusa
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Re: Mortgage final payment

Post by cusetownusa » Wed Aug 07, 2019 2:33 pm

planetmike wrote:
Wed Aug 07, 2019 6:57 am
My wife and I decided to pay off the mortgage. We only owe around $2,500. When I generated the payoff letter at Wells Fargo, it said we have to wire or mail a check. It seems really odd I can't set a payment up through their online tool. I'll be calling them this afternoon to see what they say. They really don't want people to pay off their mortgages, do they?
Interestingly enough i just went through this with my bank. I thought it was odd also but just went ahead and walked down to my bank and wired everything over. Only had a few hundred dollars left as I was paying extra through my banks online tool, just couldn't pay it off through their.

gmc4h232
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Re: Mortgage final payment

Post by gmc4h232 » Wed Aug 07, 2019 3:06 pm

8foot7 wrote:
Wed Aug 07, 2019 7:16 am
If it were me I’d take a check to a branch and pay it to them in person, get a receipt, and stop by the store for a nice bottle of wine.
I did this. It was obvious that the lady I dealt with had no experience with people paying off their mortgages in person. It was anti-climactic. Recommend mailing a check.

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JoeRetire
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Re: Mortgage final payment

Post by JoeRetire » Wed Aug 07, 2019 4:52 pm

planetmike wrote:
Wed Aug 07, 2019 6:57 am
They really don't want people to pay off their mortgages, do they?
For $2500, they don't really care either way.
Don't be a lemming.

student
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Re: Mortgage final payment

Post by student » Wed Aug 07, 2019 4:56 pm

Congratulations.

02nz
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Re: Mortgage final payment

Post by 02nz » Wed Aug 07, 2019 4:57 pm

Ugh, I actually just went through this with Wells Fargo, way more complicated than necessary. I wanted to make part of the payoff by wire, but this got held up for several days instead of being applied immediately to principal (Wells Fargo ultimately fixed it, but only when I uttered the magic letters "CFPB").

I also did part of the payoff by phone, multiple times. These were direct debit (ACH) transactions and went through no problem, the amount was applied to my principal before the money even came out of the checking account. There's no fee. So I'd probably recommend going this route, not wire transfer.

rj342
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Re: Mortgage final payment

Post by rj342 » Wed Aug 07, 2019 5:06 pm

Did mine in the WF branch about 3 years ago, quite painlessly. IIRC I stopped by a week or so before hand and got the exact payoff amount so I could move a bit of money around. Came back later and it was fairly quick.

Wish I had thought to try to claw back the the transfer fee :annoyed

LC Mike
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Re: Mortgage final payment

Post by LC Mike » Wed Aug 07, 2019 9:05 pm

Both I and a co-worker encountered a few issues when trying to payoff our mortgages with Wells Fargo. They stated several requirements which included $20 extra fee. We both decided to estimate what we owed based on payoff date, added $20 as a cushion and mailed a regular check. We avoided jumping thru their hoops for the final payoff and any additional costs. Once payment was processed, they sent us a small refund check. They have all these special rules for payoff but at the end of the day, they will accept a normal payment at the end of the loan.

MikeG62
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Re: Mortgage final payment

Post by MikeG62 » Thu Aug 08, 2019 6:56 am

planetmike wrote:
Wed Aug 07, 2019 6:57 am
My wife and I decided to pay off the mortgage. We only owe around $2,500. When I generated the payoff letter at Wells Fargo, it said we have to wire or mail a check. It seems really odd I can't set a payment up through their online tool. I'll be calling them this afternoon to see what they say. They really don't want people to pay off their mortgages, do they?
Don't recall the process when I paid mine off 6-7 years ago, but congratulations are in order. It's a cool milestone to hit.
Real Knowledge Comes Only From Experience

cribby1531
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Re: Mortgage final payment

Post by cribby1531 » Sun Aug 18, 2019 10:16 am

Just did this yesterday and it was as expected and described (but with Chase). Bank guy was actually quite jovial and congratulatory. Then we went across the street to our credit union and had the final amount wired. Freedom is here by Tuesday in the form of the 'paid in full' letter :beer :beer

Rudedog
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Re: Mortgage final payment

Post by Rudedog » Sun Aug 18, 2019 3:12 pm

Congrats !!!! Be sure to get that release of lien from the County that Watty referred to, keep a copy with the payoff letter from the bank. Around here the County has a fee for an "official copy" but I gladly paid it as I wanted a copy of the release.

CoastalWinds
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Re: Mortgage final payment

Post by CoastalWinds » Sun Aug 18, 2019 5:13 pm

I’m shocked so many people use Wells Fargo!

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whodidntante
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Re: Mortgage final payment

Post by whodidntante » Sun Aug 18, 2019 5:44 pm

After a reasonable period of time goes by, check with the county and confirm the lien was actually released. Don't just assume it was. Ask me how I know.

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willthrill81
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Re: Mortgage final payment

Post by willthrill81 » Sun Aug 18, 2019 5:54 pm

Congratulations! At least psychologically, paying off a mortgage is a big deal for most folks. But it certainly has some financial rewards too.
8foot7 wrote:
Wed Aug 07, 2019 7:16 am
If it were me I’d take a check to a branch and pay it to them in person, get a receipt, and stop by the store for a nice bottle of wine.
That's our plan, but I should probably check with our lender to verify that they will accept mortgage payoffs in local branches.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

Topic Author
planetmike
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Re: Mortgage final payment

Post by planetmike » Sun Aug 18, 2019 10:10 pm

Thank you everyone! It turns out that a wire from Suntrust costs $25. A certified check is free, so I could either overnight it for $24.95, or 2 day mail for $7.95. Or first class mail for $0.50. I did the two day mail, had the check prepared for an extra three days of interest, just in case. The final payment went through Friday night or Saturday morning.

We did not choose Wells Fargo, they bought our mortgage about 45 days after we closed. I was not pleased, but there was no guarantee that a refinance would have been fruitful, so we left the mortgage there.

Topic Author
planetmike
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Re: Mortgage final payment

Post by planetmike » Sun Sep 08, 2019 9:31 pm

And on Friday we got a check back from Wells Fargo for a whopping $0.69! It's been a while since I laughed so hard.

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willthrill81
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Re: Mortgage final payment

Post by willthrill81 » Sun Sep 08, 2019 9:43 pm

planetmike wrote:
Sun Aug 18, 2019 10:10 pm
Thank you everyone! It turns out that a wire from Suntrust costs $25. A certified check is free, so I could either overnight it for $24.95, or 2 day mail for $7.95. Or first class mail for $0.50. I did the two day mail, had the check prepared for an extra three days of interest, just in case. The final payment went through Friday night or Saturday morning.

We did not choose Wells Fargo, they bought our mortgage about 45 days after we closed. I was not pleased, but there was no guarantee that a refinance would have been fruitful, so we left the mortgage there.
Glad to hear it went smoothly. Congratulations!

We hope to be mortgage free by April. Thankfully, we can go to a local branch and give them a personal check for the exact amount to make the final payment.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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CyclingDuo
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Re: Mortgage final payment

Post by CyclingDuo » Mon Sep 09, 2019 7:03 am

planetmike wrote:
Sun Sep 08, 2019 9:31 pm
And on Friday we got a check back from Wells Fargo for a whopping $0.69! It's been a while since I laughed so hard.
Priceless. Frame that sucker and hang it in your den!
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grettman
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Re: Mortgage final payment

Post by grettman » Mon Sep 09, 2019 10:08 am

So happy for you. I hope to have mine paid off in 2.5 years.

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