How to Pay Off Your Land Early and Get Your Warranty Deed

Paying off your owner-financed land early saves you interest, gets your deed in hand, and is the moment the land really feels yours. Here's exactly how to do it.

The day you make your final payment is the best day in the contract.

We don't say that lightly. We've seen the look on people's faces when we hand them a recorded warranty deed at payoff. Whether it took 7 years or 3, the moment when the land becomes legally and finally yours is something special.

Here's exactly how the early payoff process works on a contract with us, and why we think it's worth pursuing if you can.

The short version

You can pay off your contract early at any time, with no prepayment penalty. When you do, we sign a warranty deed transferring the property to you, record it at the local Probate Judge's office, and send you the recorded deed.

That's the whole arc. Now let's go through how to actually do it.

Step 1: Know where you stand

Before you decide to pay off early, log in to your Lendiom account and look at your current balance.

What you'll see:

Current principal balance. This is the amount that, if paid today, would satisfy the contract.
Accrued interest since the last monthly payment. A small amount, prorated daily.
Any late fees or other charges still outstanding.

The total of those three is your early payoff amount.

If you're not sure where to find it on Lendiom, just call us at (205) 202-9620 and we'll pull it up and email you a payoff statement.

Step 2: Decide if it's worth it

Not always obvious. Some questions to think through:

Yes, pay it off early when:

You have the cash sitting in savings earning 0.5% in a checking account
You've been paying 9% interest and the cash isn't earning more elsewhere
You're approaching a major life change (retirement, a move) and want clean ownership
You want the deed in hand before applying for construction financing
You just want the freedom of being out of debt

Maybe wait when:

You'd be liquidating an investment that's returning more than your contract interest rate
You'd be tapping into an emergency fund you actually need
You're using debt strategically and have a plan
You're 6 months from contract end anyway — the savings are minimal

We've had both types of conversations. The point: paying off early is a personal choice, not a moral imperative. Make the math work for your situation.

Step 3: Calculate your savings

Some real numbers from a typical contract with us.

Example: 7-year contract, $33,500 financed at 10% APR, monthly payment $556.

If you pay it off:

Year 1 (after 12 payments): Remaining balance ~$30,400. You've paid $3,300 in interest already. Paying off now saves you ~$11,800 in future interest.
Year 3 (after 36 payments): Remaining balance ~$22,800. You've paid $9,200 in interest already. Paying off now saves you ~$5,800.
Year 5 (after 60 payments): Remaining balance ~$13,000. You've paid $12,200 in interest already. Paying off now saves you ~$1,800.

The earlier you pay off, the more interest you save. After year 4, the savings get small.

Step 4: Request a payoff statement

Before you wire money or write a big check, get a written payoff statement from us. It includes:

The exact dollar amount due as of a specific date
A "good through" window (typically 14–30 days)
Wire instructions or check delivery details
Confirmation that the payoff fully satisfies the contract

This protects both sides. You know exactly what to send. We have a clean record.

Step 5: Send the funds

Three ways to actually move the money:

1. ACH through Lendiom. Larger ACH amounts can take 3–5 business days to clear and may have transaction limits. Check with Lendiom for your specific limits.

2. Wire transfer. Same-day, generally the cleanest path for a large payoff. Costs $15–$45 from most banks. We send you wire instructions on the payoff statement.

3. Cashier's check. Hand-delivered or sent by overnight mail. Old-school but reliable.

We do NOT accept regular personal checks for full payoffs (any clearing issue would create a long uncertain delay before we can deed the property).

Step 6: We sign and record the deed

Once your payoff funds clear (typically within 1–3 business days of receipt):

We prepare the warranty deed in your name (or in whatever name combination is on your contract — multiple buyers, trust, LLC, etc.).
We sign and notarize it.
We submit it to the county recorder or other recording office where the property is located.
The county records it. Cost: typically $50–$150 (this is the only "closing cost" on a payoff).
They stamp the recording info on the deed and return it to us.

This part takes 3–10 business days from when funds clear, depending on county workload.

Step 7: You get the recorded deed

We mail or hand-deliver the recorded warranty deed to you, along with:

A final payoff confirmation showing the contract is satisfied
Updated tax records reflecting the transfer (we coordinate with the local Tax Assessor)
A note from us — usually a handwritten one, because this is a real moment

You file the deed with your important papers. The property is now legally yours, free and clear. You can sell it, refinance it, build on it, will it to your kids — anything you want.

What changes the day you have the deed

Honestly? In day-to-day life, not much. You've been using the land as yours since the contract was signed. The land doesn't physically change.

What changes:

Your name is on the recorded deed at the courthouse. Anyone looking up the property sees you, not us.
You can use it as collateral for a construction loan, home equity loan, etc., much more easily.
You can sell it without a contract assignment — you sign a deed transferring it to a new buyer, just like a normal real estate sale.
No more monthly payment. This is the obvious one.
No more relationship with us, contractually. We're still here as friends and resources, but the legal relationship is closed.

We have a whole post on what changes the day you get your deed that goes deeper.

Common questions

"Is there really no prepayment penalty?" Correct. Pay off month 1 or month 84, the math is the same.

"Can I make a partial early payment to reduce my balance without paying off completely?" Yes. Send extra principal anytime through Lendiom. It reduces your principal balance and shortens the contract.

"What if I want to refinance into a bank loan instead of paying cash?" Possible. Some banks will do a refinance once you have enough equity built up (typically 30–50% paid down). The bank loan pays us off, we deed the property to you, and you have a new mortgage with the bank. We've helped buyers navigate this.

"Do I need a lawyer?" Not for our deals. The deed is straightforward, the recording is routine. If you want a lawyer to review the deed before recording, that's perfectly fine and typically costs $200–$400.

"What about taxes?" Property taxes are still due annually whether the contract is paid off or not. Mortgage interest deductibility on your taxes ends when the contract is paid off (which is fine — you're not paying interest anymore). Talk to your accountant about your specific situation.

What we love about payoff day

We're not going to pretend we don't. Watching a family go from "we want to own land but can't qualify with a bank" to "here's our recorded warranty deed" is the whole reason we do this.

If that's where you're headed, keep going.

Ready?

If you're already in a contract with us and ready to pay off, call us at (205) 202-9620 for a written payoff statement. If you're not yet a buyer and you're shopping with payoff-in-7-years (or sooner) in mind, look at our lots.

— Providential Real Estate