Mortgage Term

Mortgage term is the time period that a loan agreement is in force, covering the maximum time in which a borrower is suppose to repay the lender if the loan is not renegotiated or refinanced.

You can alter your mortgage term simply by making additional payments toward the principal of your loan. One extra payment a year could shave off 7 or more years from your mortgage term.

Mortgage terms are generally 15 years and 30 years, with some lenders offering 40 years now.

Posted in Refinance Glossary.