Early mortgage payoff protocol

Lender fee, extra interest may be involved

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DEAR BENNY: I am going to pay off my 30-year mortgage at the end of this year, which is 10 years early. When I contacted the mortgage company to ask for a payoff amount, the representative said there would be some fees included. Someone else told me that there should be no fees and to refuse to pay them. What should I expect when paying off my mortgage? Should I also get the original deed? --Jay DEAR JAY: Permit me to explain the mortgage process. When you first obtained your mortgage (also called a deed of trust) 20 years ago, among a large number of papers involved, you signed a promissory note and a mortgage (or deed of trust). The note is the IOU -- "I promise to pay the lender 'X' dollars, at 'Y' interest rate, due in full in 30 years." Your lender wanted security, just in case you were unable to make the necessary payments. So you also signed a document entitled a deed of trust, which was recorded among the land records in your county or state. Some states s...