The Importance of Canceling Your Mortgage: Financial Benefits and Risks

Why should the mortgage be canceled when the payment is finished?

After years of paying religiously, the question seems most logical, but it has its reasons. Do you remember when you bought the home and checked that it was free of encumbrances? Well then, In the Property Registry your home is linked to a mortgagewhich has its drawbacks, such as not being able to sell it.

Even if your plan is to stay in the house and not get rid of it, canceling the mortgage is a good measure to take care of our financial health. Keep in mind that, Even if you have already paid it all, still having the mortgage unpaid penalizes you when requesting other types of financial products. as personal loans or credits that you may need at some point in your life.

And, although strange, there is another assumption that justifies the decision not to let the issue of cancellation pass: bank mergers. In the event that your entity is immersed in one of these processes, it may be a bad idea to have the mortgage still valid, since new costs and other unpleasant surprises may be generated that we will have to face whether we like it or not.