Reference

Mortgage Term

Mortgage Term

Plain meaning

The length of a specific mortgage contract before it must be renewed, refinanced, or repaid.

Also called

five-year mortgage mortgage renewal renewal term

Key points

  • The mortgage term is different from the amortization period.
  • When a term ends, the borrower may need to renew at then-current rates and conditions.
  • Renewal risk can rise when interest rates increase.
  • Mortgage terms affect household cash flow, lender competition, and financial-stability discussions.

Why it comes up

Interest-rate and mortgage-policy articles often turn on the difference between the contract term and the full amortization period.

News signals

mortgage renewal interest rates payment shock housing affordability

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