What Happens When You Pay Off Your Mortgage in West Chester?

Paying off your mortgage is a major milestone—and whether you’re approaching the final payment or recently paid off your loan, you may be wondering… what happens next?

In this article, we’ll walk you through what West Chester homeowners can expect once the mortgage is fully paid, how to handle documentation, and how to protect your home moving forward.

 1. You’ll Receive a Payoff Statement (If You Haven’t Already)

Before making your final mortgage payment, your lender or servicer will send you a payoff statement—an official document that shows:

• Your final payment amount (including any interest or fees)
• A payoff good-through date
• Where to send the final payment

Tip: In Pennsylvania, be sure your servicer includes any recording fees if they’re responsible for filing your satisfaction.

2. The Lender Will Release the Lien

After receiving your final payment, the lender will prepare and file a mortgage satisfaction piece—this is the legal document that removes the lien from your property.

 

In Chester County, the lender is required to:

 

• File the satisfaction within 60 days
• Submit it to the Recorder of Deeds Office
• Send you a copy of the recorded satisfaction

Pro Tip: Always follow up to confirm this gets recorded. It’s what proves your home is 100% yours—free and clear of debt.

3. You’ll Stop Making Escrow Payments

If your lender was collecting money for property taxes and homeowners insurance through escrow, those payments will stop once the mortgage is paid off.

Now, you’re responsible for paying:

• Township, county, and school taxes
• Your annual homeowners insurance premium

 

Be sure to mark tax due dates in your calendar so you don’t miss them. Chester County homeowners receive separate bills for each:

 

• Township/Borough taxes (early in the year)
• County taxes
• School district taxes (typically mid-year)

4. Your Title Is Fully Yours

Once the lien is released, your home’s title is no longer encumbered by a mortgage. You fully own your property—one of the most empowering moments of homeownership.

 

This also means you’re free to:

 

• Sell the property with no mortgage to satisfy
• Borrow against your home’s value if desired (via HELOC or cash-out refinance)
• Update your estate planning to include the paid-off property

5. You May Get a Partial Escrow Refund

If you had an escrow account with a balance left after payoff, your servicer is required to refund that balance—typically within 20 business days of account closure.

 

Keep an eye out for a check in the mail or a direct deposit notification.

6. Protect Your Paid-Off Home

Now that your home is 100% yours, it’s important to:

• Continue property insurance coverage
• Pay your taxes on time
• Consider a will or trust to protect your asset
• Monitor your property record annually (you can use Chester County’s Recorder of Deeds site)

 

Reminder: Even without a mortgage, you still need to maintain your home’s legal and financial obligations.

Questions About Paying Off Your Mortgage?

Whether you’re nearing the end of your loan or planning for it in the future, understanding the process ensures a smooth transition.

 

At CM Mortgage Services, Inc., we’re here to answer your questions—whether it’s your first home or your last mortgage payment.

 

Serving homeowners in West Chester and all of Chester County.