Definition
Satisfaction of mortgage is the formal document recorded with the county certifying that your mortgage has been paid in full, releasing the lender's lien. Recording removes the mortgage from your title.
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When a homeowner pays off a mortgage, the lender issues a satisfaction of mortgage (also called 'release of mortgage' or 'deed of release') to be recorded. This removes the mortgage from title and releases the lender's security interest. Some jurisdictions require specific satisfaction language, while others use a lender's form. Recording the satisfaction is essential to clear title, and homeowners should obtain it promptly after payoff.
Pro Tip
Request the satisfaction of mortgage from your lender in writing and follow up to ensure it's recorded.
Example
A homeowner refinances and pays off the old mortgage; the old lender records a satisfaction of mortgage, clearing the original lien.