Loan Term

The time frame through which the loan will be waged off; the loan matures at the completion of the term, compelling the proprietor to pay the residual balance; this is different from the amortization period; a loan can be amortized over 25 yrs, but may have only a 5-yr term in which case the balance on the loan needs to be paid at the end of 5 yrs (typically paid by refinancing the loan).