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Mortgage Dictionary: Definition of Loan Term

Here is the definition for 'Loan Term'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.

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Loan Term

The loan term refers to the amount of time that a borrower is given to pay off a loan. Loan terms vary, but are often set at 15 or 30 years.

Loan term is a key factor used to establish the size of the periodic (e.g, monthly or biweekly) payment. The longer the loan term, the smaller the size of the periodic payment.

See also:   Loan Duration