What is the difference between a loan term and loan amortization period? Looking at both the definitions, they seem the same to me.

For loans that amortize (such a conventional mortgage) the amortization period is usually the same as the term period of the loan. But it's possible to structure a loan with no amortization at all - e.g. an interest-only loan, which may have term of, say 10 years but no amortization period. At the end of the ten years you have to pay the principal off all at once.

Ditto.

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Originally Posted by ebaines

For loans that amortize (such a conventional mortgage) the amortization period is usually the same as the term period of the loan. But it's possible to structure a loan with no amortization at all - e.g. an interest-only loan, which may have term of, say 10 years but no amortization period. At the end of the ten years you have to pay the principal off all at once.

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So without amortization, you just pay interest?

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Originally Posted by Allen Farber

So without amortization, you just pay interest?

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Maybe, maybe not. Depending on the conditions of the loan you may be able to pay off some principle early, thus lowering your interest payments for the remainder of the loan term as well as the lump sum due at the end.