This ritual was performed to celebrate the release of the debtor from further payment obligations, and was sometimes accompanied by a party in which extended family and friends were invited.
In the early twenty-first century, due to increased mobility and other factors, few U.S. mortgagees continue to make payments until the end of the mortgage term.
[1][2] Even when a mortgage is satisfied (“paid off”) at the conclusion of payments, throwing a party to celebrate is considered to be in poor taste as it seen as bragging about one’s secure financial condition as opposed to a standard rite of passage.
Modern advice columnists and etiquette experts generally advise against having mortgage burning parties attended by anyone other than immediate family.
The concept of a mortgage burning party was at least briefly referenced in a 1975 episode of All In The Family, “Mike Makes His Move”.