Satisfaction of Mortgage

AAA

DEFINITION of 'Satisfaction of Mortgage'

A document generated and signed by a mortgage lender, acknowledging that the borrower has paid off the mortgage loan in full and that the mortgage is not a lien on the property. The Satisfaction of Mortgage document must be filed with the county office or land registry office in order to get the property deed updated and to obtain clear title to the property. 

INVESTOPEDIA EXPLAINS 'Satisfaction of Mortgage'

Getting the Satisfaction of Mortgage from the lender can take a few weeks after the final mortgage payment has been made. In the event that no Satisfaction of Mortgage is recorded despite the mortgage having been paid off in full, the property will continue to show a lien against it. Most U.S. states stipulate a penalty for the lender if a Satisfaction of Mortgage is not filed within a reasonable period of time after a mortgage debt is discharged in full.

Many financial planners recommend accelerating mortgage payments in order to pay off the mortgage faster. Making the occasional extra mortgage payment – assuming the lender allows it without penalty – can slash months off the mortgage term and save thousands in interest costs. A viable strategy to expedite paying off a mortgage will help homeowners get the coveted Satisfaction of Mortgage document even sooner.

The Satisfaction of Mortgage is also useful if the owner wants to pledge the property as collateral for a business or personal loan. Of course, the merits of taking out a loan using the house as collateral, after spending decades paying off the mortgage, should be thoroughly considered before being done.

Note that even if the mortgage loan is paid off in full, if other liens such as tax liens are attached to the property, they will continue to remain in place.

RELATED TERMS
  1. Private Mortgage Insurance - PMI

    A policy provided by private mortgage insurers to protect lenders ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  4. All-In-One Mortgage

    A mortgage loan that combines the features of a checking account, ...
  5. Mortgagee

    An entity that lends money to a borrower for the purpose of purchasing ...
  6. Canadian Mortgage and Housing Corporation ...

    A division of the Government of Canada that acts as Canada's ...
Related Articles
  1. Home & Auto

    Got A Good Mortgage Rate? Lock It Up!

  2. Home & Auto

    Choose Your Monthly Mortgage Payments

  3. Home & Auto

    Calculating The Mortgage Interest Tax ...

  4. There are no guarantees that the mortgage applications the MBA index tracks will be approved or will result in purchase activity.
    Active Trading Fundamentals

    Reading The MBA Mortgage Purchase Index

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center