Receipt or release?
A discharge is a document in which the creditor acknowledges that you have repaid the amounts owed to him in full and agrees to the discharge of the mortgage, while a release is a document in saudi-arabia business email list which the creditor agrees to waive the benefits of the mortgage, but does not confirm that the debt has been paid in full. Because it does not include any acknowledgement of payment, a release may seem less attractive to the borrower. However, there are several reasons why it is preferred over a discharge.
First, let's clarify that there are several credit products available from a financial institution: loan, line of credit, credit card, etc. These credits can be secured or unsecured. Generally, when they are secured, certain advantages are offered, including a lower interest rate and a higher available amount. When you apply for a new loan and the conditions are met, the institution offers you this choice.
If you have benefited from these advantages, when the time comes to sell the mortgaged property, you can decide, with your creditor, to keep the line of credit in operation (in its entirety or at a lesser amount) and to repay only the loan, for example. In such a case, the creditor will not sign a discharge since he has not been paid in full. He will sign a release to renounce his mortgage rights, with the consequence that you will retain access to your line of credit while having lost the benefit of the prime rate. In this example, it is your decision to keep the line of credit open that explains why this is done.