From the FFIEC rate spread calculator Help page:
•Fixed term (loan maturity) or Variable term (initial fixed-rate period)
&The loan term has a different meaning depending on whether the loan is fixed- or variable- rate. For a fixed-rate loan, the term is the loan’s maturity (i.e. the period until the last payment will be due under the loan contract. For a variable-rate loan, the term is the initial, fixed-rate period (i.e. the period until the first schedule rate reset).
&The loan term, should be entered in years using whole numbers between 1 and 50. Terms consisting of a whole number of years and a fraction of a year should be rounded to a whole number according to the following rule: a fractional year of .5 or less should be rounded to the lower term, and a fractional year greater than .5 should be rounded to the higher term. There is an exception for a loan term shorter than six months, which should be rounded to 1.
&If the amortization period of a loan is longer than the term of the loan – i.e., because the loan has a balloon feature- the lender should use the term when selecting the applicable yield. For example, in the case of a five-year loan that has a balloon payment because the payments are amortized over 30 years, the term of five years must be used.
&;In an Adjustable Rate Mortgage (ARM) situation, there may be a long period to maturity and a feature whereby the rate adjusts at a much earlier time -- for example, five years. In that case, as explained above, the term is the initial, fixed-rate period, not the full term to maturity. For example, a 5/30 ARM that is amortized over 30 years should use 5 as the loan term,with the initial rate fixed for the first five years.
&#If an obligation is payable on demand, the creditor shall make the disclosures based on an assumed maturity of 1 year. If an alternate maturity length is stated in the legal obligation between the parties, the maturity shall be based on that length.