Glossary term
Mortgage term
The period covered by the current mortgage contract, including its rate, payment conditions, prepayment provisions, and other terms.
Plain meaning
What mortgage term means
A mortgage term is the period during which the current mortgage contract is in effect. A new term is generally required when the term ends unless the remaining balance is paid in full.
How OpenBook uses it
Contract period, not repayment horizon
OpenBook uses mortgage term to separate the current contract period from the longer amortization period used in payment and interest illustrations.
Common boundary
Several terms may occur within one amortization
A mortgage commonly has several terms during its amortization. Reaching term-end does not mean the mortgage has been fully repaid.