Paying Off a Mortgage Loan With an Early Inheritance Gift

Paying off your mortgage will give you the deed to your home.

Paying off your mortgage will increase your credit score and help you achieve financial freedom. If you've received an early inheritance gift, you can apply that gift to your mortgage. Read your contract before making a final lump-sum payment, as there may be penalties for early repayment. Check to see how the inheritance gift will be taxed before promising to make the payments. You don't want to guarantee your mortgage company a large payment and then be stuck paying taxes you can't afford.

Instructions

1. Pay off all taxes on your inheritance. Tax laws for inheritances are complex. Hire an accountant if you're having trouble deciphering the taxes on your own.

2. Make an appointment with your lender. Know what amount you can pay on your mortgage when you attend the meeting.

3. Ask for an early-payoff estimate. Check that you can afford the total payment.

4. Make the payment. Fill out the closing paperwork. Sign and date the papers.

5. Request a Release of Mortgage document after your payment has cleared. This is proof that you've paid off your home and that the mortgage is entirely in your name.

References

• Moolanomy: Pay Off Mortgage Early
• Iowa State University: Legal Terms
• Federal Reserve: Understanding the Mortgage Process