Are You Finally Mortgage Free?
Have you been paying diligently on your mortgage for years and years? Maybe you’ve made a few extra payments occasionally, or just a monthly payment for thirty years, but now you’ve finally sent in your last payment.
First off, congratulations! Now there are a few steps to take to ensure everything is taken care of.
What Happens Now?
In a few weeks you will receive some paperwork stating that your mortgage has been paid in full. You might even receive a check from money that was in reserve to pay insurance and property taxes. You will also receive the deed to your home, which you should promptly put somewhere safe. A fireproof safe or safety deposit box are the best solutions to ensure nothing happens to this precious piece of paper.
There Are Still Bills To Be Paid
While you no longer have a monthly mortgage payment, you still have to pay property taxes and homeowners insurance. It’s a good idea to set money aside for your yearly taxes. If you go by the previous year’s taxes, you should have a good idea how much should be saved up.
Invest some of that would be mortgage payment back into your home. Chances are if you have paid off your home, it has some years on it. Make wise renovation choices that will give your home added value, such as redoing a kitchen or bathroom or making your home energy efficient.
Save Money Each Month
Putting that monthly payment into a savings account for retirement or a high interest account will help you stash some extra money for anything that may come up. Instead of watching your mortgage go down, watch your retirement account grow for years to come. Don’t forget to celebrate. Paying off a mortgage is a huge accomplishment!
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