In next few months will be making final loan payment.

I assume a lawyer is recommended to review documents from lender and title company.

Any potholes to watch out for in this procedure?

Also what is typical charge I should expect from lender and is there any state or federal restrictions on lender as to what they can charge to complete this procedure.

It usually takes 3-4 weeks for the bank to do it, title company is not involved and I've never used an attorney. They should mail you the release and it will have the county stamp on it if it was released properly. They will likely charge the $10-15 clerk fee but I've never seen any other fees to release, I believe the FDIC prohibit fees after a payoff and set stiff penalties if the bank does not comply within a set period of time (I think it is 30 days). If you want to check you can simply go by the county clerks office and ask if it was filed. Much easier than engaging a lawyer or title company.

Op's concerns are nothing that has EVER entered my mind.

Make your final payment. In Pennsylvania, within 30 days you will receive your Note stamped "paid" and also a Satisfaction of Mortgage document from the court house. You probably will get a letter indicating loan is paid in full and that any remaining escrow will come to you. Review next monthly statement to be certain funds were applied as you expected. Probably (not really sure) one more statement showing zero owed.

There is no title company involved.

You may want to check online with your county's recorder of Deeds website to make sure the Satisfaction doc was recorded.

I assume it probably won't be an issue, but with all of the mergers and acquisitions that took place in the banking industry in addition to the fact that many loans get sold to one of the quasi-government agencies that buys loans, this is now the third loan service company that has handled the loan and the loan is owned I believe by Fannie Mae.

Is this something that has any impact on the process?

Yes, they absolutely will be sending payoff amount, and there are no amounts held in escrow.

Should be very simple since even though it is a variable rate loan, we are currently paying the "floor" of the interest rate range so they will know the interest rate for the last payment well in advance.

BTW, congratulations on your loan payoff!

My grandmother said back in the day they’d have mortgage burning parties where people would celebrate by burning the mortgage documents in the fireplace.

Also there’s and ancient Scottish tradition of painting the front door red when it’s paid off. The reasoning is that back then red was the most expensive paint to buy and once the house was paid off there would be money available for this paint. It was also a great source of pride!

Thanks Sandy,

As to painting the front door red with the newly available money, those funds are already reserved for some improvements.

BTW, just wondering what the ancient Scottish tradition was for dealing with non paying tenants.