Choosing a loan term with the whole horizon in view
Term on the Loan Estimate
Ledger note
Page one of the Loan Estimate shows the loan term and projected payments, and page three shows comparisons like total interest percentage and what you will have paid in five years. Ask for estimates on two terms and line up those sections.
Last reviewed against the primary sources listed below.
Line up
- Loan term.
- Projected payments.
- In five years.
- Total interest percentage.
Term questions readers send
Where is the loan term on a Loan Estimate?
On page one under Loan Terms.
What does total interest percentage mean?
Total interest over the term as a share of the loan amount.