What should you do once your mortgage is paid off?
Practical next steps after your final mortgage payment.
What should you do once your mortgage is paid off? This question often comes up when homeowners make their final payment and want to be sure nothing important is overlooked.
Answer
Once your mortgage is paid off, update your financial housekeeping and redirect the freed up cash flow. First, confirm with your lender that the loan shows a zero balance and that the lien release or satisfaction is recorded with your county. Then contact your homeowners insurer and tax office to adjust billing so you pay them directly instead of through escrow. Consider boosting retirement contributions, rebuilding savings, or investing toward other goals using the former mortgage payment amount. Finally, store closing documents safely and review your estate plan and titling to ensure your home passes according to your wishes.
Use the home payment planning tools to decide how to reallocate your former mortgage payment.
Browse more payoff and planning topics in the mortgage FAQ section.