Mortgages feel like an endless future when you win one. Thinking about paying hundreds of thousands of dollars over ten to thirty years may sound like a ball and chain weighing you down: but this time passes. Almost seventy percent of Americans live mortgage-free after the time passes, which means it’s an attainable goal. Instead of worrying too much about the future, here are some of the things that may happen once you’ve paid off your mortgage.
Taking Out Another Mortgage for a Loan
When people have worked to pay off their mortgage, they may decide on another big-ticket item they want. Whether it’s a gorgeous giant boat or a vacation home, some people take out another mortgage on their property after they finish paying it off. This idea may sound foolish to some, but to many, it’s entirely reasonable. If you take this route, make sure to weigh all of your options thoroughly.
Selling For Full Profit
Some people wait until their home is finished getting paid off before they consider selling it. This plan is mostly to ensure the money all goes directly into their pockets. This plan works best for people who want to do renovations over time. The space of ten to thirty years is an excellent area of time to update kitchens a couple of times, create a yard that’s the envy of the neighborhood, and figure out what kind of decor works best for staging the home.
Giving It Away To Next Family Member
If you got a thirty-year mortgage, the chances are that you have adult children starting families of their own by the end of it. Some people pass on their homes to the next generation of their bloodline or even sell it to these family members for cheap. This option is excellent because it keeps a home within your family and takes some financial hardship off your children’s shoulders.
What Changes For Me?
When your mortgage is first paid off, you’ll receive an information packet from your lender detailing your payments and that you’ve completed them. These papers are generally called mortgage release papers or mortgage satisfaction. It would be best if you kept a close hold on these somewhere that you’ll be able to locate them quickly.
Will I Still Have to Pay HOA and Property Taxes?
Yes. Absolutely. Unfortunately, paying off your home doesn’t change the local homeowners association, nor does it change the fact that you’ll have to pay property taxes every year. By the time you’ve paid off your mortgage, there’s no doubt the property tax rate will have gone up with your property value. Homeowners’ associations are unfortunately forever unless you can talk them into dissolving and breaking up.
Paying off a mortgage is one of the most significant steps to buy a house, and you should be proud of yourself! Not only have to complete a commitment that can last between ten and thirty years, but you’ve also held to your word and probably improved your credit. Be smart with decisions moving forward, and you’ll be able to enjoy the lack of payments!