Mortgage Term

The amount of years you have to pay off your mortgage is the mortgage term. A 15-year term implies you have 15 years to pay off your mortgage, whereas a 30-year period means you have 30 years to pay it off. Each month, you must make a payment. Because your total mortgage debt is spread out over a more extended period, 30-year mortgages often have lower monthly payments than 15-year mortgages. A shorter term implies that your amount is spread out over a shorter period, resulting in larger monthly payments.