A mom of 3 explains how she and her husband paid off their 30-year mortgage in just 2 years
Nov 03, · Now that you, the borrower, have paid off your loan and have become the sole owner of a property, you’ll have to handle these responsibilities on their own. Fortunately, your mortgage lender may have required you to pay an amount slightly larger than necessary to satisfy these bills. Nov 07, · You made the last payment – now wait. It may take a few weeks to receive your paperwork, which will include a "satisfaction of mortgage" statement – a letter stating that you've paid off your funslovestory.com may also even receive a check, since your mortgage lender probably had some of your money in reserve to pay your homeowners insurance and property taxes.
I had my credit frozen at big three credit bureaus after the burglary event two years ago see Lessons After A Burglary: How to find out who your car insurance is with Security.
I only look at them very infrequently. When I checked my credit score last week, I saw a large drop in November The graph below was from Bank of America. It stayed around there since then. The latest score was I also checked on Barclays. The FICO score history graph there showed the same thing. My score dropped 29 points from to after I paid off my mortgage. The score also stayed there since then.
Both places also showed a drop of about 20 points between July and September I made large principal payments toward the mortgage during that time. If I also include that effect, the total drop from paying off the mortgage would be 42 points and 48 points from my two sources. The No. Your score was impacted because your proportion of installment loan balances to the original paid off the mortgage now what amounts is too high. The 5-year loan was taken out in December Altogether I would call it drop of points from paying off the mortgage.
The credit score should really be called a credit grade. As long as your score still belongs to the excellent grade, it makes zero difference whether the score is, or It matters only when the drop kicks you below a cutoff. Usually any score above mid will be considered as good credit. I put everything I use to manage my money in a book. My Financial Toolbox guides you to a clear course of action. So this would be similar to me paying it off from the report standpoint. So TransUnion dropped 13 and Equifax dropped 27 points because I no longer had an active home loan.
I had a credit score of until I paid off my mortgage a couple of years ago. I have paid off my credit cards monthly, for years. My score dropped around 25 points and now tends to be around to After all, why penalize the people who are the most capable of paying off a debt? I have an auto loan and one other loan how to check how many credits you have in college I pay every month.
I have never missed a payment. My credit score was I paid the charge one week after my purchase. I paid off the remaining 13, on my mortgage and my score dropped by 30 points?!?! I have a great payment history and now have zero debt. How is this even possible? I expected my score to go up only to find a huge downturn instead. This is insane and only bolsters my opinion that the Credit Bureau is just another branch of organized crime. I just received this unexpected change.
Mine dropped 37 points! I, too had a perfect payment history! The same thing happened when I paid off my mortgage…those bastards dropped my score 30 pts. No credit cards, just debit, no car loan. When I saw that new score it just made me even more determined to keep paying cash for everything.
Why did my credit score drop 38 points, after just one late mortgage payment posted two days late! Exact same situation here. Paid off mortgage, credit score FICO dropped by 26 points and has stayed there for last 2 months at This highlights just what complete BS these credit scores are.
What kind of stupidity is this? So I have to get myself into more debt to prove I am creditworthy, after decades of proving it already? Screw you. Your story is almost identical to mine, except for the scores. I was at for years. One credit card company had me at which was strange because I thought was the highest score you could get?
I sold my condo in Aug after living in it for 15 years and never missed a single payment. In fact, I pay all my bills 2 weeks before the due dates. My score what are wetlands made of 35 points!! I then check 2 other accounts and those also dropped points. Paid off mortgage, credit score FICO dropped by 23 points.
None of this makes any sense. I really thought it would go up Very baffling…. Just paid off my mortgage after 31 years. Zero late fees on all my accounts and my credit score dropped. Same here. I paid off my mortgage 10 years early, and my score dropped from to I have been using credit karma which provides a weekly score update. The score from each bureau is sensitive to when in the monthly cycle they pull credit card balance data.
I am in the same boat. Payed off ALL my debts: cars, mortgage etc. FICO dropped from ish down to If you payoff your debts prematurely you are not making them any money.
In Debt economy this is No Bueno. Same boat, paid of 2 of my student loans and my car, my score dropped 76pts! Paid this back even though bank had closed account.
This was nearly 5 years ago, still have negative impact from this. Recently paid off mortgage, score dropped another 35 points. Carry zero debt, cards paid off monthly. That makes NO sense. Same story here. No recent auto loans. I had a multi-year history of perfect credit scores until I did two things: 1. Paid off my mortgage on an accelerated schedule.
Started paying credit cards ahead of anticipated charges to maintain a small yet consistent positive balance, so that I would never incur debt. After that, my credit rating fell 33 points. Go figure. Another weird thing was that I applied for a lease on a GM economy car several years ago. At the time, my total income was mid seven figures, net worth was eight figures, only debt was mid five figure mortgage, yet GM Financial turned me down, citing my credit score, which they reported back as three points shy of perfect.
Dito others comments. My score was I paid off the mortgage when I sold my home and then paid cash for the new one. My score dropped to I have multiple credit cards but if I use them I pay them within 2 weeks. No other debt at all. Seems crazy rachael ray how to brine a turkey it drops your score when you eliminated debt.
My mortgage was just sold to another bank and my score dropped 34 points! When I paid off a car loan, it dropped 14 points! This arcane Credit Score system needs a federal investigation.
Why should a responsible person what would happen if i drank bleach penalized with higher insurance rates, etc.
Okay, so now you have a better idea of how your mortgage amortizes or gets paid off. Your next move will be to determine if paying your mortgage down faster is a good idea. In the example above, you’ll pay a total of $, over the year term, with $, going toward interest. Apr 04, · Whatever the rate you paid on the loan, you are now saving. That’s a good thing. Of course, there are sound arguments for bolstering your retirement account before hastening to pay off a mortgage early. But while the performance of an IRA can be unpredictable, saving money by paying off a mortgage is a sure thing. Jul 09, · I had a credit score of until I paid off my mortgage a couple of years ago. I haven’t had car debt in years. I have paid off my credit cards monthly, for years. My score dropped around 25 points and now tends to be around to My next big purchase will be a replacement car, but I’ll probably just pay cash.
The lender will send you a certificate of satisfaction. This certificate, which the lender records in your home county, notifies the public that you have satisfied your obligation, and the lender has removed the lien from your property.
A few details of this process depend on what state your property is in, and whether your debt was secured through a deed of trust.
While the loan you have just paid off is commonly called a mortgage, some states use a deed of trust to secure the debt:. Once recorded, the mortgage or deed of trust will appear on the title to the home. These states use the judicial foreclosure process. Mortgage lien states include:. These include the District of Columbia, and:.
Some states allow both mortgages and deeds of trust:. It is now time for the lender to release the lien. Within 3 weeks after you fully pay your loan off in California, for example, state law requires the lender to cancel the deed of trust and dismiss the trustee.
The lender does this by issuing a deed of reconveyance. Another term for this, in the mortgage situation, is the deed of release of mortgage. It shows that the homeowner has paid for the property, fully satisfying the conditions of the loan. In Georgia, to take another example, the lender releases the mortgage by returning the original security deed—the cancellation stamped on its face—or a quitclaim deed specifying release or cancellation.
When the bank no longer has a lien on your home, you own it. Be sure you have the documentation to prove it in a safe place—such as an actual safe. If you do not receive a certificate of satisfaction within the month, contact your lender to request the documentation.
It should have your up-to-date details. Be ready to pay the property taxes that used to be paid from your escrow account. Contact your insurance provider, too. Of course, there are sound arguments for bolstering your retirement account before hastening to pay off a mortgage early.
But while the performance of an IRA can be unpredictable, saving money by paying off a mortgage is a sure thing. Indeed, the closer you get to retirement age, the more conservatively your financial planner will advise you to invest.
Therefore, satisfying a home loan becomes increasingly beneficial over time. Pay off the mortgage, and you can also take out a reverse mortgage to help fund a happy retirement.
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