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.