What is the maturity date of a mortgage?
- Definition of Maturity Date
The maturity date of a mortgage is the last day of a loan term, as agreed upon by the mortgage lender and borrower. When a loan term ends the last day is known as the maturity date. On this date, the borrower must either repay the loan in full or negotiate a new loan term.
Why is this term important?
The maturity date of a mortgage is the day a mortgage term ends. On this day, the borrower must either repay the mortgage debt in full, opt to renew the mortgage with the current lender or have a new loan term agreement in place.
Examples of term
An example of a maturity date of a mortgage can be seen on any loan document, typically in bolded type font. For instance, if you obtained a 25-year mortgage for $200,000 with a loan term of five years and a start date of July 1, 2015, then the maturity date of the mortgage would be July 1, 2020.