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Old 01-23-2018, 01:53 PM
 
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I've been told by my financial institution that I'd be collected a fee of $100 something if I want to payoff my mortgage. They claim this is a fee due to the state of California, they just collect it. Does this fee exists?. Is it collected only for a fulll payoff? In other words, would I also be collected this fee if I pay almost all, but not all of my mortgage?
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Old 01-23-2018, 02:20 PM
 
Location: Cary, NC
30,498 posts, read 53,441,792 times
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Quote:
Originally Posted by fern73447 View Post
I've been told by my financial institution that I'd be collected a fee of $100 something if I want to payoff my mortgage. They claim this is a fee due to the state of California, they just collect it. Does this fee exists?. Is it collected only for a fulll payoff? In other words, would I also be collected this fee if I pay almost all, but not all of my mortgage?
It is for recording the satisfaction of your loan at the courthouse.

Your loan payoff amount does not cover that.
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Old 01-25-2018, 11:45 PM
 
Location: Tennessee at last!
1,774 posts, read 1,544,857 times
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The fee would be collected when you fully pay off the loan and the new paperwork would be recorded with out the loan.

BTW, they are adding a surcharge above what the state law has added to the fee. Maybe for their 'handling' of the fee, but it really should not cost them anymore as they had to release the lean and pay a fee anyway. Just now they need to add $75 to the old fee.

Here is the law summary:

The California Legislature recently passed Senate Bill 2, also known as the Building Homes and Jobs Act (“Act”) and was signed by the Governor on September 29, 2017.

The Building Homes and Jobs Act (“Act”) imposes a recording fee for real estate documents.

Effective January 1, 2018, the Act imposes a new fee of $75 be paid at the time of the recording of every real estate instrument to be recorded, including – deed, grant deed, trustee’s deed, request for notice of default, abstract of judgment, notice of default, assessment lien, release*of lien, easement, notice of trustee sale, notice of completion, mechanic’s lien, maps, and CC&Rs.

The fee will be added to each transaction per single parcel of real property and is in addition to all other existing recording fees. Substitutions and reconveyances within a single recording count as separate transactions and will be billed separately.
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Old 01-28-2018, 05:39 AM
 
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The state needs more money due to constant overspending and cities in the red. source: SJ Mercury News
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Old 01-29-2018, 09:02 AM
 
8,851 posts, read 5,475,177 times
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Quote:
Originally Posted by fern73447 View Post
I've been told by my financial institution that I'd be collected a fee of $100 something if I want to payoff my mortgage. They claim this is a fee due to the state of California, they just collect it. Does this fee exists?. Is it collected only for a fulll payoff? In other words, would I also be collected this fee if I pay almost all, but not all of my mortgage?
If you pay mostly all you do not have to pay the fee until you pay the total mortgage off completely.

Why worry about it when it's such a small amount in the grand scheme of a $500K or more home average in Cali.
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Old 01-29-2018, 09:05 AM
 
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I would imagine that's for recording the satisfaction of mortgage document fee with the local county office.
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Old 02-01-2018, 06:26 AM
 
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And if you had a long term fixed rate mortgage, the government subsidized the luxury of having the best of both worlds - long term rate certainty AND ability to pay back (or refinance to a lower rate) at any point without significant penalties. Long term instruments back fixed rate loans so there is a risk and cost associated with this and the government generally picks up the tab for that risk.

So one should feel lucky that the true costs of exit (and or the risk of exit all along) were not paid by you.
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