From the video
What Do You Still Pay After Your Mortgage Is Paid Off?
What the video covers
When the mortgage is paid off, the principal and interest stop. The property tax and homeowners insurance in your escrow do not. They keep coming for as long as you own the house, and after payoff they arrive as lump bills instead of a monthly slice.
On the house in the video, the payment is $3,208.11 a month. The $2,401.86 of principal and interest ends. The $806.25 of tax and insurance stays behind: a $6,650 tax bill and a $3,025 insurance renewal.
The month it happens: watch for your escrow refund (the servicer has 20 business days), check that the release of your loan is recorded, take the lender off your insurance policy, and give the old payment its new jobs, starting with the tax and insurance.
Run your own numbers in the free mortgage payoff calculator →
Get The Retirement Money Blueprint, free
A 12-page guide and an Excel workbook for homeowners 50 and older. Type three numbers from your mortgage statement and it shows the month your house is paid off, then walks you through Social Security, withdrawals, property tax breaks, staying or moving, and the house and your family. It is free, and it comes to your inbox.
More from the channel
All the channel's videos and worksheets Mortgage Payoff Calculator
The four questions to answer on your own loan
Can you recast your loan, or is it FHA and cannot be recast at all? When can your PMI come off, and against which value? What will escrow do next year? Should retirement money go near the house at all? The Payoff Planner Pro answers all four on your own numbers.
See the Payoff Planner Pro →One payment of $97. Nothing renews. 30 days to change your mind.