Final Payment

• Because the interest rate on your fixed-rate mortgage remains the same for the life of the loan, you'll always know the date and amount of your final payment. However, depending on the type of fixed-rate mortgage you have, your final payment may not be the same as a typical monthly payment. For example, if you have a fixed-rate balloon mortgage, the final payment will be much higher. Whatever the case, your final payment will be the step that ends your mortgage debt and initiates the finalization process.
  
  

Promissory Note

• When you signed for your fixed-rate mortgage, you signed a promissory note agreeing to pay back the loan according to the terms of the written agreement. The promissory note includes information about the final payment and the fixed interest rate, along with other regulations from the lender. When you pay off your fixed-rate mortgage, the lender will send you your promissory note with a new notation that indicates the debt is paid off. This document serves as proof that your fixed-rate mortgage is finished.
  
  

Land Records

• Every municipality has its own way of keeping land records, but when you pay off a mortgage, you'll need to find out how to make sure your full ownership of your home is reflected in the public records. Some lenders will help you with this process, while others may leave it to you to contact the local land records office. You'll be able to take possession of the paper deed that was formerly held by your lender, which indicates that you own the property yourself.
  
  

Following Up

• Even after you acquire the promissory note and deed for your home, your post-mortgage tasks aren't finished. Within a few months of making your final payment on your fixed-rate mortgage, request a copy of your credit report. Each of the three credit reporting agencies must provide a consumer with a free copy of his credit report once a year. The credit report should include notice that your mortgage is paid off in full. If it does not, or if the mortgage is listed as unpaid or not paid as agreed, contact the lender to correct the error. Without checking your credit report you may not know about a reporting error until you apply for a loan and discover the incorrect notice.