What Is a Loan Maturity Date for a Mortgage?
A mortgage is a type of loan in which a piece of land or a building is held as collateral or a guarantee for repayment of a loan. A mortgage’s maturity date is the calendar date when the mortgage loan agreement ends.IdentificationThe loan maturity date for a mortgage is disclosed in the loan agreement or paperwork that the borrower signs when taking out a mortgage. On the maturity date, the loan typically must become paid off in its entirety.Time FrameThe maturity date for a mortgage is typically a set amount of years from the date the mortgage documentation was signed, such as 15, 20, 25 or 30 years.CostThe further in the future a loan maturity date, the more time the borrower has to pay off the loan, which results in lower payments as the debt becomes distributed over a larger amount of months. Lenders often charge higher interest rates the further in the future a loan maturity date is from the signing date of the contract, giving 15-year mortgages lower interest rates than 30-year l
