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you've paid off your mortgage but other than your word you might wonder how do I prove I paid off my mortgage you may need proof for future lenders or other Financial situations the good news is that you can prove you paid your mortgage in many ways the bad news is that it might require a little legwork to get the proof you need don't rely on the County recording your mortgage is paid off and removing the lien or your lender letting the credit bureaus know your mortgage is paid in full having adequate proof that your mortgage is paid off may come in handy more often than you think in this video we'll show you how hey everyone this is Andy Hill from Marriage kids and money a channel dedicated to helping you strengthen your family tree so you can live financially free if you like what you hear today please consider giving me the YouTube triple thanks that's hitting the like button subscribe to the channel and then commenting down below I love helping people on their Journey so those comments keep them coming okay first things first what happens when you pay off your mortgage well the first thing you should do when you pay off your mortgage is celebrate this is a tremendous milestone in your life you did something insane incredible way to go my wife and I celebrated with our kids by creating a mortgage pinata burning the mortgage and running through a mortgage wall with our kids after enjoying your big Financial win however you decide to do it you'll hear from your lender receiving several documents that show you satisfied your mortgage agreement some lenders send your canceled note a final mortgage statement or a release of lien no matter what your lender sends keep the proof as it may come in handy down the road if you're really nerdy you could even frame it like I did let's discuss some important questions to ask your lender before the entire mortgage process is paid and done first question will they record the release of lien or should you do it this is a crucial step when you pay off your mortgage the release of lien shows that you own the property without anyone else laying claim to the property unfortunately not all lenders file the release of lien with the county if they won't you need to do it second question will your lender notify the insurance company and county or must you do this if you paid your real estate taxes and insurance money to an escrow account each month you'll be responsible for making your payments going forward this is the situation that we went through as a family in addition you must let the insurance company know the lender is no longer a factor and should be removed from your policy third question what documents will they provide to prove you paid the loan in full each lender offers different documentation make sure you know what to expect so you have proper proof of your mortgage being paid in full fourth question how much is required to pay off my loan your lender should provide you with a mortgage payoff statement that shows you how much you owe to pay off the loan in full the payoff statement will be good through a specific date if you don't pay it off by that date you'll owe extra money for the per diem interest I got a full video on mortgage payoff statements as well now everybody if you're wondering how do I prove I paid off my mortgage here are the steps you will take remember each lender is different so you might get one some or all of these documents here we go step one get a final mortgage statement always ask your lender for a final mortgage statement first this is the easiest way to prove you paid off your mortgage until the lien gets released and the balance shows as zero dollars on your credit report lenders can supply this right after you pay off your mortgage so you have the evidence handy if you need it your final mortgage statement can easily prove that you paid off your loan looking at previous mortgage statements you'll see that they show how much you owe how much you've paid and the proposed payoff date once you pay the loan in full the principal and interest due should show zero dollars and the amount you've paid should be the total loan amount as long as it's an official statement with your lender's logo this is adequate proof that you've paid off your loan in addition the statement is dated and has the information any lender would need going forward number two receive a paid in full letter your lender should send you a paid in full letter after receiving your final payment the letter is simple and it states that you've satisfied your obligation and don't owe any more money keep this letter as it can help if the credit bureaus don't update your credit report with the correct information number three get a recorded lien release when you've borrowed your mortgage the lender filed a lien against your property this is in response to using your home as collateral for the loan and provides the lender with the right to foreclose on your home if you stop making your mortgage payments once you pay off the loan the lender no longer has a lien on your property however the lien release isn't automatic instead there are one of two ways to activate a lien release the first way is the lender contacts the County recording office and provides them with the documentation that you satisfy the lien the recording office then removes a lien from your record and then the second way is that you contact the County recording office and provide them with proof that you've paid off your your mortgage your lender will provide the necessary documentation including a release of lien document or a certificate of satisfaction proving that you paid the mortgage in full proving the lien release is evidence enough that you've paid the mortgage in full though no lender would release a lien without proper payment and don't forget if your lender gives you the release of lean document make sure it's recorded with the county without recording it the lien still looks like it's outstanding number four keep your canceled mortgage note the mortgage note is an important document when you borrow a mortgage known as the promissory note this document is what you sign to say that you promise to make your mortgage payments as agreed each month the promissory note is no longer valid when you pay off your loan however you don't owe the lender any more money so they can cancel that contract most lenders will mail you up canceled promissory note that you should keep for your records in case there are any questions down the road okay you paid off your mortgage and you have the documents to prove it what's next you might be asking well of course every homeowner is different but here are some ideas on handling your finances going forward pay off Consumer Debt interest rates have increased a lot lately especially for credit cards making carrying credit card debt unaffordable for most with your newfound money available consider paying off your Consumer Debt completely use the debt snowball method if you have more than one credit card line your debts up by balance smallest to largest paid off the first debt in line then work your way down the line until you've paid off all your credit card debt in full additionally boost your emergency fund everyone should have at least three to six months of expenses for an emergency fund if you don't have a fund set up yet or it doesn't have six months of expenses in it use your extra money to boost it this will further eliminate worries in your life going forward and then also save more for retirement it's never too late to add more money to your retirement savings whether you have a 401K with your employer or an IRA which you have yourself increase your contributions if you don't have a retirement account yet outside of work now is the perfect time to create one so you have enough money for retirement check out M1 Finance to open a Roth IRA and and use your new found income to grow your future wealth I'll put their Link in the description you could also transition from full-time work to part-time work with lower expenses without a mortgage you may be able to make some lifestyle changes that you never thought were possible crunch the numbers and see if you want to work less and enjoy more life today your part-time work status may allow you to have more time with your kids or your aging parents or just tell a little bit more peace and quiet for yourself in the end the answer to how do I prove I paid off my mortgage is simple the lender will provide you the documentation you need if they don't follow up and ask for the paid in full letter canceled note release of lean and final mortgage statement with these documents you can prove you paid your loan in full so whether you're applying for a new loan proving to the insurance company you paid off your loan or need the proof for any other reason the documentation we talked about today should suffice well enough from our side everyone we want to hear from you are you wondering how do I prove I paid off my mortgage what are you going to do now that you are mortgage free please let us know in the comments below this is Andy Hill from Marriage kids and money signing off carpe diem [Music]