On a mortgage, the maturity date is the date the final payment is due, and when it is paid it signifies the end of the loan. Once this installment is paid in full, the borrower gets title to the property, owning it free and clear.

The maturity date is the date the final mortgage payment is due. Photo: Nattanan Kanchanaprat/Pixabay

The maturity date is preset by the terms of the mortgage. For instance, a 30-year mortgage ends exactly 30 years after the initial payment is due; likewise, a 15-year mortgage runs for 15 years. (Some loans allow prepayments without financial penalties and therefore come to an end before the time specified. Prepaying a mortgage saves the borrower money.)

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