Legal Definitions - release of mortgage

A release of mortgage is a legal document that is used to discharge a mortgage when the borrower has fully paid off the loan. This document is recorded publicly to show that the borrower now has full equity in the property.

John took out a mortgage to buy a house. He made all of his payments on time and eventually paid off the entire loan. To show that he now owns the property outright, John obtained a release of mortgage document from his lender. This document was recorded with the county clerk's office to show that John now has full equity in the property.

Another example could be a couple who took out a mortgage to buy a vacation home. After several years of making payments, they decided to sell the property. In order to transfer ownership to the new buyers, the couple needed to obtain a release of mortgage to show that the loan had been fully paid off and that they had full equity in the property.

These examples illustrate how a release of mortgage is used to show that a borrower has fully paid off a mortgage and now has full equity in the property. This document is important for transferring ownership and for establishing the borrower's legal rights to the property.