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MRSJARI's Photo MRSJARI Posts: 5,592
10/10/10 11:21 P

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Thank you, NellJones! I am still new at this, trying to go through legal things and so on, and need help! I appreciate the advice and will definitely look into it.

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NELLJONES's Photo NELLJONES SparkPoints: (215,692)
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10/10/10 5:31 P

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When you take out a mortgage (or in my state, sign over a Deed of Trust) the lender will record (at your expense) a lien against your home. The only way the county can remove the mortgage lien is for the lender to release the lien. The lender will send (after some nagging) a Deed of Satisfaction that says the obligation of their lien has been satisfied and can be released. They will send it to you, not to the county. The lien has to stay on your home until you take that Deed of Satisfaction to allow them to release it. I had to pay $15 I think to the county when I handed over the Deed of Satisfaction. What a wonderful thing to call it!

Nell
Reston, Virginia

No one ever got up in the morning wishing she'd eaten more the night before.

Original Goal: 114. Current old lady goal: 106.


 
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MRSJARI's Photo MRSJARI Posts: 5,592
10/10/10 4:31 P

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Deed of Satisfaction? I do not know about this one! Is that what it is actually called? Does the county not record that there is no more mortgage until they see this? I will have to look into it. Thank you!

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ILLINITEACHER52 Posts: 7,257
10/10/10 3:50 P

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I am already paying my insurance and taxes myself rather than having it in with my mortgage. It will be a truly wonderful feeling when there is no more mortgage payment!!!

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NELLJONES's Photo NELLJONES SparkPoints: (215,692)
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10/10/10 10:11 A

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When I paid off my mortgage, it took over 6 months for the county to get the word, so they were still billing my old mortgage company. I knew the due dates for the taxes and went to the county building to pay it myself the first time. Can't be late with taxes! After that, they sent the bills to me. Same with my insurance company. Everyone was cooperative, but the mortgage servicer had to notify THEM to stop sending them bills. They couldn't take my word for it.

Also, be sure your mortgage company is removed as first payee from your insurance.

And, be sure to get a Deed of Satisfaction!! That part is up to you. Your lender won't do anything automatically. I had to call Citigroup for over a month to get that paper (the one people used to burn). Get in your car and drive to the county land records office and record it. That was the one time I didn't mind waiting in line. Once I handed it to the clerk and got notice of recordation, the house was ours! What a feeling!

Nell
Reston, Virginia

No one ever got up in the morning wishing she'd eaten more the night before.

Original Goal: 114. Current old lady goal: 106.


 
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CAROLFAITHWALKR's Photo CAROLFAITHWALKR Posts: 15,801
10/10/10 12:13 A

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So; that's a very important point!, Mrs Jari. A year BEFORE you pay off your house early, set up a new allocation fund for property taxes & homeowners insurance. Then it's already in your budget, and you're already used to making that 1/12th payment every month, to yourself, for taxes & ins.

Of course when you have a whole **extra** mortgage payment that is now FREE MONEY in your budget, you could just use the first extra payment (or 2, of course, depending on the payment amount) to pay your taxes and ins. But having it regularly in your budget and paying 1/12th a month, is a good behaviour modification exercise to begin and have in place. Maybe if not a year ahead of time, then maybe 6 months ahead of last payment, start a new allocation fund of 1/12th of the total, just to be mindful of it.

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MRSJARI's Photo MRSJARI Posts: 5,592
10/9/10 11:35 P

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We were blessed enough to be able to pay off our mortgage earlier this year. It is a Wonderful feeling, and I recommend it to all.

Don't forget, though, that you will now have to pay house insurance and property taxes yourself, every year. I have realized this, but it still surprised me when the bills came in!

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ILLINITEACHER52 Posts: 7,257
10/8/10 8:11 A

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OK - I've been thinking of refinancing to a 15 year and this is the boost I need to actually get it accomplished. I will still be paying for a mortgage after I retire but at least it won't be for as long.

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MARIASPARKLE's Photo MARIASPARKLE Posts: 6,062
10/8/10 4:56 A

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Hi Carol! Great post!

I've got a whopper mortgage in my sole name. When my husband and I separated, I had to buy out his half of our house, so I remortgaged in 2008 for €220,000 ($305,000) for a term of 26 years (till I reach age 65).

The thought of working till 65 just to pay my mortgage is overwhelming. So, from January 2011, I'll be paying €200 per month extra into my mortgage. I've got my GEEKY budget all set!

By my calculations, I'll be knocking 6 years off the term of my mortgage. It's not much, but the thought of a whole 6 years without a mortgage payment... PURE BLISS...

And you never know, I might win the lotto in the meantime!!
emoticon

UPDATE / EDIT - I've spoken with my bank manager who says I can change my term/repayment amount anytime. So, from Jan 2010 I'll reduce the term to 20 years AND make those €200 extra payments per month. Hopefully, I'll have it all paid off in 15 years. Yaaay!

Edited by: MARIASPARKLE at: 10/11/2010 (09:01)
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(¸.*♥Maria♥ *´¨) Proud to be a non-smoker since 6th Feb 2008!!
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(NEW) STARTING WEIGHT - 01 Jan 2012 - 169.4 lbs

MY REWARDS:
165 lbs - new workout clothes - DONE!
160 lbs - haircut - DONE!
155 lbs - new workout music - DONE!
150 lbs - new jeans
145 lbs is my goal - end July 2014!


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CAROLFAITHWALKR's Photo CAROLFAITHWALKR Posts: 15,801
10/8/10 2:13 A

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Excerpts Taken From:

beautyandbedlam.com/paying-down-your
-m
ortgage/


How would you like to save $100,000 in fifteen years?

Many people take out a thirty-year loan thinking they’ll just double up on payments and pay it off sooner. The reality of that is that even if you “pinky promise” yourself that you will pay extra, you won’t. Something else always finds priority. Statistics from the FDIC state that 97.3 percent of people do not systematically pay extra on their mortgage.

Realistically, are you going to be that .7 percent that actually pays? Most likely, no, not unless you get very intentional about it.

As we look at a 15 year mortgage vs. a 30 thirty year mortgage, I want you to sit down for this fact. Do you know that if you pay just $250 more per month, you will save $100,000?!!! ONE HUNDRED THOUSAND!!

Interest rates are at an all time low!! I can’t stress enough that you should call your bank now and check into your options!! I realize that many of you may not qualify for a 15 year mortgage because they do all this debt to ratio numbers stuff that starts sounding Greek to many, BUT many of you can switch up and do what we did. Set your mortgage bank account up so that it automatically withdraws an extra amount each month. That way, your sticky fingers never see that money, and you don’t have a chance to change your mind at the last minute. Even if it’s an extra $100 a month, it will equal thousands and thousands of dollars over time.

One of my wonderful friends, Joy of Five J’s, fivejs.com/about-2/ , has been on a debt snowball reduction plan this past year, strategically paying off debt left and right. I am so proud of what their family is doing. Their latest revelation was in terms of their mortgage. She is another one of my geeky friends, so one night we were talking refinancing ( I know, I know…don’t laugh). I asked her this morning if I could share the huge amount of money they will be saving by not only refinancing, but also paying extra each month. Look at what taking this one small step towards financial security will do for their budget. Here’s her explanation.

“We have 23 years left on our current 30 year loan. We’re refinancing our mortgage to save 1% on our interest rate (dropping it to 4.75%). Although we’re refinancing to another 30 year loan, the savings in our interest rate means that we can keep paying the same amount each month on our mortgage payment that we’ve been paying for the last 7 years, and we’ll save $30K in interest, PLUS our house will be paid off in 18 years from now, instead of 23. If we pay about $100 extra on our payment each month, we’ll save another $10K in interest and pay off the house in only 15 years. Also, since were refinancing through our current mortgage lender, we don’t have to pay for another appraisal or a home inspection. As an added bonus, because of the refinance, we’ll be skipping a mortgage payment, so I can use that month’s payment to pay down on our credit card balance.”

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