Ownwell automatically calculates the mortgage's Maturity Date based on information from the mortgage application. Here's a breakdown of the process:
Key Dates:
Closing Date: The date on which the new owner takes possession of the property; the lender advances the borrower the principal amount.
Interest Adjustment Date (IAD): The date on which the mortgage term begins (when normal payments commence). This date is usually the first day of the month following the closing. Some lenders, like TD, refer to this as the Term Start Date, which is the terminology we use for this date at Ownwell.
Calculating the Term Start Date:
Default: If no specific Interest Adjustment Date is provided, the Term Start Date is the first day of the month following the Closing Date.
Interest Adjustment Date: If an interest adjustment date is specified, the Term Start Date will be that date.
Calculating the Maturity Date:
Once the Term Start Date is determined, Ownwell uses the loan's term length (e.g., 5 years) to calculate the Maturity Date.
Example (from a real TD mortgage agreement)
