Save Money: 5 Mortgage Payoff Mistakes to Avoid After Selling in Isli

Selling your home in Islip and planning to pay off your mortgage early? Great move—but make sure you're not leaving money on the table or creating unnecessary stress. Many homeowners rush through the process and miss key details that could cost them. Here are the 5 most common mistakes to avoid when paying off your mortgage early after a home sale:

1. Not Requesting a Final Payoff Statement

Your online mortgage balance isn’t the full story. The final amount due will include daily interest, potential fees, and escrow adjustments. Always request a written payoff statement from your lender to avoid underpaying—and delaying closing.

2. Ignoring Prepayment Penalties

Some mortgage agreements include prepayment penalties, especially if you’re paying off the loan within a few years. Check your loan documents or ask your lender directly. Knowing this upfront helps you factor it into your closing costs and avoid surprises.

3. Overlooking Escrow Account Balances

Many homeowners forget they may be entitled to a refund from their escrow account—which typically holds funds for property taxes and insurance. After your loan is paid off, the lender should send a refund check. It’s a small bonus you don’t want to miss.

4. Not Verifying the Loan Was Fully Paid Off

Don’t assume it’s done just because you closed. Confirm that your lender processed the payoff and issued a satisfaction of mortgage letter. This document clears the lien on your property and should be recorded with the county.

5. Handling It Alone Without Professional Guidance

Even though paying off your mortgage seems straightforward, mistakes can happen. Work with your Realtor, attorney, or escrow agent to ensure everything is calculated and processed correctly. A local pro like Jeffrey Canas at Serhant South Shore will guide you through every step of the post-sale process.