Mortgage Dictionary
Select a term from the dropdown text box. The online mortgage
dictionary will display a definition, plus links to other
related web pages.
Select term:
Loan Duration
In many contexts, the terms "loan duration" and "loan term" are used interchangeably.
On this website, we try to distinguish between loan duration and loan term.
- Loan term refers to the amount of time that a borrower is given to pay
off a loan.
-
Loan duration refers to the actual amount of time that it takes a
borrower is to pay off a loan.
At most, the loan duration will be equal to the
loan term.
However, the borrower can reduce the loan duration by making
prepayments.