Last day of the term of the mortgage agreement. Premium added to mortgage and paid by the borrower over the life of the mortgage. This insures the lender against loss in case of default on part of the borrower. Mortgage Insurance is provided by a number of insurers. Penalties may be payable when a prepayment option is excised under a closed mortgage.
Old mortgage is paid off and discharged from the proceeds of the new mortgage.
TERM Length of time during which the specific mortgage agreement is effective.