What certificate does a lender issue when a mortgage is paid in full?

When a mortgage is paid in full, the lender issues a Satisfaction of Mortgage. This document serves as an official acknowledgment that the borrower has fulfilled all obligations under the mortgage agreement, essentially confirming that the debt is settled. The Satisfaction of Mortgage is an important legal document because it clears the title of any claim the lender had over the property.

Once recorded, it allows the borrower to demonstrate that they own the property free of any mortgage obligations. This is essential for the borrower's peace of mind and for any future transactions involving the property, such as selling or refinancing.

Other options, such as Title Insurance, Release of Lien, and Deed of Trust, play different roles in the real estate transaction process. Title Insurance protects against future claims or issues related to ownership, a Release of Lien is more general and might be used to signify the removal of a lien for various types of debts, and the Deed of Trust is a security instrument used to secure a loan. However, none of these serve to acknowledge the full payoff of a mortgage specifically like the Satisfaction of Mortgage does.