Definition: In traditional real estate terminology, a term or straight mortgage is a nonamortizing loan with principal due at maturity, commonly with periodic interest payments.
Example
The borrower pays interest during the term and repays the original principal when the loan matures.
Keep the distinction clear
An amortizing loan also has a loan term. The study term here specifically identifies the nonamortizing structure.
Related terms
Amortized Mortgage · Balloon Payment · Principal
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: CFPB: mortgage key terms
Pronunciation (US): TERM MOR-gij (capitals show stress)
Pronunciation reference: Merriam-Webster
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