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  • Writer's pictureShaila Campbell

Tips & Tricks When Paying off Your Mortgage

You've reached a point in life where you're able to pay off your mortgage--Congrats! Here's a few tips and ticks to consider when doing so:

1.) If you'll be continuing to live in your home, contact your lender directly. Their payoff department will provide you with an exact amount and instructions as to payoff your mortgage balance. If you're paying off your mortgage as a result of selling your property, there is nothing for you to do; your Escrow Officer will handle this for you as a result of the sale.

2.) Notify your Insurance Agent. It's likely that your homeowners insurance and property taxes were being impounded. Now that you don't have a mortgage, you'll need to pay your homeowner's insurance premiums directly to your insurance carrier.

3.) Look out for your Property Tax Bill. Property taxes are paid twice per year to the City & County of Honolulu. Tax bills are mailed out on July 20th (due August 20th) and on January 20th (due February 20th). If you don't receive it, you can also obtain one directly from the Tax Assessors website ( This will help you avoid costly late fees and penalties.

4.) Save your Release of Mortgage. Your lender will mail you an original Release of Mortgage that verifies that your mortgage was paid off. Your lender will typically also release the lien off of title. Keep this Release of Mortgage document forever, and with your other important paperwork.

5.) Receive a Check for your Impounds. You'll likely also receive a check with the remaining balance of your impounds. Most clients seem to receive this within 3-4 weeks after paying off their mortgage, but just check w/ your lender. Your impounds is a small account that your lender keeps on hand so they can pay your property taxes and insurance. You'll receive the balance of what's left in it typically by mail.


Questions? For more info, call Shaila at 808-741-7155 or email Hawaii Homes & Estates LLC. License No: RB-20456.


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