Loan Term
Years over which the loan amortizes. 30-year fixed is the default; 15-year fixed reduces total interest paid but spikes the monthly payment.
Financing
Example
On a $300k loan at 7%, 30-year = ~$2,000/mo payment ($718k total paid). 15-year = ~$2,700/mo ($486k total). 30-year keeps cash flow strong; 15-year builds equity faster.
Why Loan Term matters
30-year vs 15-year is the classic trade. 30-year wins on cash-on-cash return; 15-year wins on total wealth accumulated. Most investors pick 30-year for flexibility, then make extra principal payments when cash flow is strong.
How to check Loan Term before you rely on it
Confirm the amortization period and any balloon or rate-reset date on the term sheet, because a thirty-year amortization with a five-year balloon is not a thirty-year loan. Model the payment at the term you will actually receive, and check the prepayment terms if you plan to pay principal early. Compare the monthly cash flow and the total interest side by side so the trade you are making is explicit.
Related terms
- Interest Rate
- Annual mortgage rate. Pricing varies by occupancy, program, borrower, property, leverage, points, le…
- Monthly Cash Flow
- Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…
Where Loan Term shows up in TrueCap
Financing inputs sit in the analyzer's financing section: the rate can start from FRED's national 30-year benchmark and every term is editable. They drive the monthly payment, DSCR, and cash flow after reserves, so a change here moves the verdict and the Offer Ceiling; the results view names the financing assumptions most likely to change the decision.