 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Update Your Insurance and Taxes\n-------------------------------\nHere's the bad news: Your property taxes and homeowners insurance don't go away once you pay off your mortgage. If you have money in escrow that your lender used to pay your property taxes and homeowners insurance for you, it's possible that you'll have extra money leftover in your escrow account. If there is any extra, the lender should refund you by mailing a check. If you're not sure, ask your lender if you'll be getting a refund.\nOnce your mortgage is paid off, you no longer have a lender requiring you to have homeowners insurance. While you aren't federally required to have it, it's important to keep your coverage since it protects you financially if your home incurs major damage or if someone is injured on your property. If your homeowners insurance was paid by your lender via escrow, once your mortgage is canceled, contact your home insurance provider to inform them that you paid off the mortgage. Let them know that you are now the sole owner of the property and will now be handling the bill yourself. Also, make sure your premiums are set up to deduct from your bank account, not your lender's.\nProperty taxes, on the other hand, aren't optional, and you now have to remember to pay them. Check with your state, county and local taxing authorities to have your property tax invoice sent to you. Find out their billing frequency, since some charge annually and some charge quarterly, and make sure to start budgeting for this expense. END