What document must the lender return to the borrower once the loan is paid in full?

When a borrower pays off their loan in full, it is essential for the lender to provide a satisfaction of mortgage document. This document serves as proof that the borrower has fulfilled their obligations under the loan agreement and that the lender has released their claim on the property.

The satisfaction of mortgage indicates that the mortgage is no longer a lien against the property, and it effectively clears the borrower's title. This is important for future transactions, as it confirms to any prospective purchasers or lenders that the property is free of the mortgage obligation.

In contrast, other documents like the original loan agreement or summaries of payments do not serve the same legal purpose. The original loan agreement is simply a record of the terms and conditions of the loan, while a summary of payments does not provide formal clearances or fulfill the legal requirements for discharging the mortgage. Any unpaid invoice is irrelevant, as it pertains to amounts still owed rather than the confirmation of a paid-in-full status.