In an ever-changing economy, the urge to create security seems to be on the forefront, as well as the need to minimize debts. If you have considered owning your home free and clear, first do the numbers.

Although nobody likes the idea of paying a large amount of interest to a bank, once you pay off your mortgage, make certain you have the funds necessary for the upkeep of your home - such as insurance, real estate taxes and routine maintenance. Before you take the leap, ask yourself whether you are better off paying the mortgage in full, or making monthly payments and saving your reserves for some other purpose.

Nevertheless, once you are ready to pay off your mortgage, here are the steps to take:

• Pay a visit to the local Recorder of Deeds in your county or city.  Procedures, requirements, and cost will vary from jurisdiction to jurisdiction. If you are not comfortable with the release transaction, you may want to seek the advice of an attorney.
• To get the full pay off amount, request a written statement from your lender. Do not rely on the amount of your last mortgage statement to be accurate.
• Before the lender can release your mortgage it must me payed off in full. With commercial lenders, interest accrues on a daily basis. If you plan to mail out your payment, take into account the transit time. To assure your lender receives the full pay off amount, you may want to add a few extra days of interest. By law, lenders are required to refund any excess payment.
• If you had your taxes escrowed, the lender will either credit the amount in escrow to reduce your pay off, or they will send you a refund check within two to three weeks from the day the mortgage was paid off.
• Once payed in full, your mortgage or “deed of trust” must be released from the land records. Typically the lender will help in preparing a release that meets the legal requirements. Still, it is important to ask if this is their standard practice. If your mortgage is not released from land records, when you decide to sell or refinance your property, you may have to scramble around to find the original lender and documents, or you may have to obtain a “lost note bond” which can be costly,
• When all procedures, requirements, and costs are finally met, make sure your lender returns the promissory note you signed at time of closing with “paid and cancelled” stamped or handwritten on the face of the note, along with the Deed of Trust. Keep in mind, it is customary for commercial lenders to take a couple of months to send these out.