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Old 11-24-2020, 08:28 AM   #21
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We kept our homeowner's insurance once we paid off our mortgage, and USAA is just billing us for it "bundled" with our auto insurance now, which is easy because that's also where we keep our checking account. I started a monthly transfer ($200) to a "property tax fund" savings account that was rounded up from 1/12th of our yearly taxes, and our county allows for no-fee eCheck (I think it's an EFT) payments, so I schedule those to be paid from the savings account as soon as the new tax bill comes out. If that account gets a significant balance, I have transferred money out, but only after the next year's bill is issued, in case it goes up and that surplus would help cover it.
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Old 11-24-2020, 09:09 AM   #22
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Congratulations. Paying off a mortgage is a big milestone.

Like many here we continued to carry homeowners insurance after going mortgage free. We live in the tinder dry west in a rural area and only takes a spark on a windy summer day to take out a whole community. Insurance gives a little bit of comfort when the sheriff is texting to be ready to evacuate as you watch the CalFire planes dropping retardant near by.

We also strategically pre-pay a portion of our property tax bill every other year so that every other year we have enough deductions to itemize our taxes. The other year we end up with the standard deduction. Have saved a few dollars doing it that way over the years.
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Old 11-24-2020, 09:22 AM   #23
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.... As far as insurance, think of all the people who have paid their whole life and didn't use it.
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Old 11-24-2020, 10:08 AM   #24
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They suggest a wire transfer because the payoff amount is only good for a few days. Interest accrued daily, so if a mailed payment is delayed, more interest accrues and there’s an existing balance still.
Yes, which is why I think I would avoid all that and just send them in something shy of the balance, then at some point the last payment will be less than normal and the payoff.
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Old 11-24-2020, 10:21 AM   #25
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Yes, which is why I think I would avoid all that and just send them in something shy of the balance, then at some point the last payment will be less than normal and the payoff.

Then once you have the final payment down to a small amount likely less than one month's mortgage amount, just pay a little extra on top of the stated balance. The bank will send back any over amount once they process it as paid off. They will also send your escrow amount received back. You do not have to wire the amount, but it might be cleaner to do it that way since the bank is used to receiving payoffs that way, especially on real estate sales. Wire fee is usually $25-35 range, so it is not that much, it is secure, and the bank can handle it per their normal process.
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Old 11-24-2020, 10:37 AM   #26
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Was playing around on the Mortgage Payoff feature on the Wells Fargo online banking site, thinking I could just pay the $170,000 by transferring the $ from my bank account to the mortgage account, but the payoff instructions seems more formal and complicated.

When you want a payoff statement, you pick your payoff date, then you press a button on the screen that generates a formal payoff letter in an old-timey courier typeface (which you can print off with a payment voucher) with very specific instructions and disclaimers, including:

WELLS FARGO HOME MORTGAGE - PAYOFF TRANSMITTAL FORM
Please send the funds by wire. This is the fastest way to complete the
payoff. If a wire transfer is not an option, we prefer a cashier's
check or certified funds.

I learned that I am paying $14.60 of interest per day. And that's at 3.25%. I can only imagine what our parents had to pay in the 70s when their mortgage interest was 18% per annum!!!
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They suggest a wire transfer because the payoff amount is only good for a few days. Interest accrued daily, so if a mailed payment is delayed, more interest accrues and there’s an existing balance still.

Interesting. When we paid off our mortgage, the formal payoff letter gave us an amount that was good for 3 weeks into the future. They also accepted a personal check. They received our payment about 2 weeks before the payoff amount expiration date, and we received a refund on the interest.

Also, though the payoff amount included a $50 "document processing fee", they refunded that as well.
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Old 11-24-2020, 01:44 PM   #27
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We paid ours off about 10 years ago. Make sure to get a payoff notification and/or deed for the property. Also, although it may be to your disadvantage, wait awhile and make sure your local assessor has updated info. In Indiana you actually get a slight reduction in assessed value (an exemption) if you have a mortgage...so your taxes may go up slightly.

Other than that, Congrats!
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Old 11-27-2020, 05:50 AM   #28
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We paid ours off about 10 years ago. Make sure to get a payoff notification and/or deed for the property. Also, although it may be to your disadvantage, wait awhile and make sure your local assessor has updated info. In Indiana you actually get a slight reduction in assessed value (an exemption) if you have a mortgage...so your taxes may go up slightly.



Other than that, Congrats!


We paid off our mortgage so we wouldn’t have to carry worthless flood insurance. We live on the coast but our house is on 13 foot stilts. We still carry homeowners/hurricane insurance. We just pay the taxes and insurance in lump sums.
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Old 11-27-2020, 10:41 AM   #29
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I paid ours off last December. Arranged for payoff quote by a phone call from my cellphone in an airport. Prepared wire transfer for payoff and secure emailed to bank... they later called me to confirm the details. Easy peasy.
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