Going to pay off my mortgage early in a couple month and want to make sure I understand all of the impacts by doing that. (Don't really want to get into the discussion of if I should pay off the mortgage early or not. That decision has been made already.)
Currently:
-Monthly mortgage payment includes Principal, Interest, and Escrow for Property Tax and Home Insurance.
After pay off:
-Obviously no more Principal or Interest monthly payments
-Property Tax due once a year now vs monthly escrow payments
-Home Insurance same as Property Taxes (although there is probably a way to pay that off over the year for a small fee similar to car insurance).
Does anything else change? Seems like no and its that simple. But I've always had a mortgage payment so this is new territory.
Thanks!
Currently:
-Monthly mortgage payment includes Principal, Interest, and Escrow for Property Tax and Home Insurance.
After pay off:
-Obviously no more Principal or Interest monthly payments
-Property Tax due once a year now vs monthly escrow payments
-Home Insurance same as Property Taxes (although there is probably a way to pay that off over the year for a small fee similar to car insurance).
Does anything else change? Seems like no and its that simple. But I've always had a mortgage payment so this is new territory.
Thanks!