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If I refinance my home, can I throw away the previous loan agreement?*
After refinancing your home and upon receiving the new mortgage contract, keep the prior loan agreement and closing papers with your tax records. The light blue dot (sticker) on your "Mortgage/Rental" tab is a reminder not to discard the old mortgage agreement but to re-file it in the tax section when replaced. There may be prepayment penalties or unrealized credits you can deduct from your taxes. Also by filing the prior mortgage agreement with your tax files, it will be automatically archived for sufficient time in case there is any dispute regarding the prior agreement (within statutes of limitation for most states). A past mortgage agreement can be quickly located in your tax archive by the year the mortgage was paid off (when refinancing occurred).
*NOTE: While FreedomFiler® provides a method of automatic purging which eliminates the need
to review files, you must ultimately decide which documents are kept two years, ten years, or indefinitely.
FreedomFiler® is not liable under any circumstances for claims of loss or damage arising from suggested
document retention guidelines. Consult a professional advisor to determine your specific document
retention needs and adapt your system accordingly.
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