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A loan's term is the amount of time you are given by a lender to repay the money you borrow. In general, small loans have shorter terms than large loans. Lenders allow more time to pay back large loans to make the monthly payments more affordable.
Repayment term is one of the key considerations of mortgage financing when qualifying for a mortgage loan. The repayment period can affect your mortgage installment depending on how long you have to pay the mortgage. The longer the repayment term in which you have to pay your mortgage, the lower your monthly installment will be.
The following calculations describe how the repayment term of the loan influences the amount of monthly repayments, if the loan to be raised amounts to 10 000 dollars.
|
 Term
|
Monthly payment |
Family's income |
|
10 years |
110 USD |
365 USD |
|
15 years |
85 USD |
285 USD |
|
20 years |
71 USD |
235 USD |
AmCredit offers mortgage loans up to 35 years. |
