What is Amortization term?
The amount of time required to amortize the mortgage loan. The amortization term is referenced as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months. A 2/28 ARM is a mortgage with payments that are based on a 28-year amortization but the loan has a two-year term before the interest rate adjusts.