It would be safe to say that most of the working-class population, in general, does aspire to buy or invest in a house or a piece of real estate in their lifetime. A lot of these people have clear-cut agendas for their life and their economic endeavours, and buying a house that is perfect for you and your family often claims the first priority in these agendas.

However, in order to have an efficient and realistic strategy that will help you achieve your goals, it is important to have a proper and in-depth understanding of all the processes that are entailed by the act of paying mortgage bills. For the uninitiated, the real estate market can be a cruel and unforgiving sphere, and even with all the necessary funds at your disposal, ignorance can cost you a lot of money.

In this article, we will try to draw your attention to the key points that you need to keep in mind before you approach your mortgage, as well as after you have finished paying them.

Before You Have Paid Your Mortgage:


Paying one’s mortgage bills is always made out to be an intimidating task, and for a good reason. This is a sphere of managing your personal economy where you need to strategize your every move in a careful and calculated manner.

You need to be aware of your budget, and you need to have the means to be able to spend a certain amount of money annually, and you need to maintain adequate savings to make sure that your funds are intact even in the unfortunate incident that an unexpected disaster strikes.

Given how much of a burden the mortgage bills are, in case you have sufficient funds, you may be tempted to clear your debts ahead of time. However, before you do that, you should consider both the positive and the negative aspects of this idea.



  • Saving expenses on interest amount: By cutting down on the period of time that you spend on paying your mortgage bills, you can simultaneously reduce the total rate of interest that you are liable to pay during the total mortgage period. This is referred to as the Amortization effect. Paying your way out of a mortgage bill ahead of schedule might help prevent a lot of unnecessary expenses. This, however, completely depends on the total sum of the loan, the initial period of the mortgage, and the percentage of interest that the customer is liable to pay on the mortgage loan.
  • Saving enough funds for future endeavours: In general, mortgages are observed to span any period of time between 15 to 30 years. That is a very prominent chunk of your life during which you will not be able to focus on any other economic endeavours without first contemplating how the said economic endeavour or investment can impact the feasibility of them being able to pay the necessary mortgage loans for any particular term. If you pay your mortgage upfront, all of this ruckus can be prevented from the get-go. You can make sure that you have enough funds saved up for the future so you can spend them on avenues that you are passionate about.


  • Steeper interest rates in other loans: In case you are channelling the money to pay your mortgage debts from your student loans or a loan from a credit card company, trying to clear your mortgage faster may not be such a good idea for you. The interest percentage on these other debt plans are far steeper than the mortgage, and if you spend a substantial sum of money from those sources to pay off your mortgage, you may be left in a worse state of debt than before.
  • Not being able to invest: If you redirect the funds that you intend to clear your mortgage with into the area of investment, you will be liable to much higher rates of return than the interest that you may be required to pay for a mortgage during the same given period. For example, if you are liable to pay 3.5% interest on a mortgage in a year, you should be able to make around twice that amount by investing. This way, you can get your mortgage bills cleared at a steady pace while simultaneously accumulating substantial savings.

Here is a brief run-down on the process to pay off your mortgage quickly:

  • Your mortgage provider can provide you with a payback estimate.
  • Observe any specific guidelines, such as paying by money order to make the final payment for the quoted sum. This quoted payout amount will only be valid until a specific date, so make sure you do not miss it.
  • The paperwork confirming your debt payment will be sent to you.
  • Ensure that your payment has been registered with your municipal authorities, and obtain a copy of the document.

After You Have Paid Your Mortgage:


Given below are some of the things you need to do once you are finished with all the paperwork related to your mortgage.

  • If you have an active system that automatically pays your mortgage for you, make sure you deactivate the service before a new amount gets deducted.
  • In case you owned a mortgage escrow account with some remaining balance, make sure that this amount is redirected to your bank account within 20 working days.
  • Get in touch with your tax collector and let them know that your property tax statements should now directly be sent to you instead of your mortgage service,
  • You will need to get in touch with all the insurance agencies that you have bought policies from. You need to make sure that none of the remaining insurance policies is linked to your mortgage escrow account anymore.
  • You should still carry on with the practice of carefully planning your expenses since you will still need savings, and even as a homeowner with no liabilities, you still have to pay your taxes.
  • If you have bought a landowners’ title insurance policy in the past, there is no reason to shut down that service after you are done paying your mortgage. There have been many cases of confusion over ownership of land in recent history.



It is generally an observed fact that people invest more money into purchasing a house than any other economic endeavour. This statement holds true for most of the human population. However, when a person buys any piece of real estate, they also open themselves up to the much-dreaded downside to buying a house, and that is paying the mortgage bills. It is fairly common knowledge that a large fraction of the land-owning population is afflicted with debt owing to the mortgage.

However, mortgage bills are one of the integral things that a person needs to keep in mind while planning their budgets and personal expenses. In this article, we have tried to get you acquainted with some of the basic ideas involved in the process of clearing your mortgage. If you are seeking a more in-depth expertise on this subject, be sure to visit and get all your queries answered.