Maturity– The date on which the principal balance or amount of a financial/debt instrument becomes due to be paid and payable. Examples of financial instruments that have a maturity date are:
The maturity date informs the investor/lender of how long interest payments will be received and at what date the principal is expected to be paid in full.
For homebuyers, when you take out a mortgage loan you’re responsible to pay your investor/lender an assured amount of money every month for an agreed period of time. After the full amount is paid back as promised, the loan matures and the interest payments discontinue. When the maturity date is reached, the principal is paid back in full and the debt is completely satisfied, your lender will no longer have a claim on your property that you now own.