Essential Considerations After Settling Your Mortgage
How long you should keep mortgage documents after paying off your loan depends on the type of document and how easily you can get copies if needed.
If you’ve already discarded documents like the mortgage, promissory note, or deed, you can usually get copies from your county recorder’s office. However, this process can be time-consuming and may involve fees. It’s best to keep these documents in a safe place until you no longer need them, which is likely after you sell your home, and possibly even longer.
**Monthly Mortgage Statements**
If you received monthly mortgage statements by mail, you don’t need to keep them after the loan is repaid. For those who do online banking, copies of each statement are likely available through your online account, which you can access and print if needed for tax purposes or to correct any mistakes.
**The Deed**
The deed is proof that you own the property and protects you from any claims by others. Keep a paper copy for as long as you own the home. There should also be a copy on file with your county recorder or land records office.
**Sales Contract**
The sales contract, or purchase agreement, details the price you paid for the property and the conditions of the sale. Keep this contract for as long as you own your home.
**Seller’s Disclosure**
The seller’s disclosure lists any defects the seller knew about at the time of sale and may include information about repairs and improvements they made. Keep this disclosure for as long as you own the home. If an issue arises that the seller should have disclosed, you may need this document to take legal action.
**HUD-1 Settlement Statement or Closing Disclosure**
You received the Closing Disclosure (or HUD-1 Settlement Statement if your loan was applied for before October 3, 2015) a few days before your sale closed. This form includes loan details and an itemization of closing costs and other financial transactions. Keep this disclosure as it can be useful for documenting capital gains if you sell the home at a profit.