What does the term "satisfaction of mortgage" indicate?

The term "satisfaction of mortgage" refers to the situation where a borrower has completed their mortgage payments in full, leading the lender to release its claim or lien on the property. This legal document signifies that the mortgage obligation has been fulfilled, and the borrower is no longer obligated to the lender for that debt. This action effectively removes the mortgage from the title of the property, allowing the borrower to own it free and clear.

Understanding the implications of a "satisfaction of mortgage" is important for homeowners, as it marks the conclusion of their mortgage journey and ensures there are no lingering debts associated with the property. Other options, while related to aspects of mortgage management and ownership, do not accurately describe the correct principle of what satisfaction of mortgage entails.