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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.

What it is

The loan term is how long you have to repay your mortgage. Common terms are 15 and 30 years.

A shorter term means higher payments but less interest overall.

Choosing one

A 30-year term keeps payments low, while a 15-year term saves interest and builds equity faster. The right choice fits your budget.

We compare terms side by side for you. Apply now and we will find the one that fits your goals.

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