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Mortgage Glossary

Loan Term

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A loan term is the length of time over which a mortgage is repaid, most commonly 30 or 15 years.

What Loan Term means

A longer term lowers the monthly payment but raises total interest; a shorter term does the reverse and builds equity faster. The term, rate, and balance together set the payment.

Florida example

A Florida buyer compared a 30-year term at $1,896 a month with a 15-year term at $2,613, choosing the shorter term to save heavily on interest.

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