By Relocation.com Staff
What does the word "Term" mean when talking about mortgages?
The term is basically the life of the mortgage or the time you will be making payments to pay the money back to the lender. Unlike the past, the lender will often allow you to pay off the loan early or prepay the loan. You will need to check this out with your lender to find out whether there are any penalties in prepaying the loan. Prepaying a loan can save you a whole lot of money. For example, if you make one extra payment on your loan each year, a conventional 30 year mortgage can be paid off in as little as 23 years. This may be an excellent choice for people who have yearly bonuses and can afford to do so. As the years go by and you begin to make even more money, some of this could also be used to prepay the loan.