Term sheet summary for a borrower

Explain a term sheet's key points to a borrower in plain English.

Last tested 2026-10-19 Its example inputs were run through Claude Haiku 5.5, and an AI judge (Jev) scored the reply 74/100 for following the rules and doing the task.

Copy

Copy

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Example output

I wrote this by hand on 2026-10-19 from the made-up inputs below, to show what a good result looks like. Your results will vary, so read every draft before you use it.

CopyHi Dana, here's the term sheet in plain English.

- Amount: $2,940,000.
- Rate: the 5-year Treasury rate plus 2.10%, locked when the loan closes. Your actual rate depends on where Treasuries are that day.
- Amortization: payments are figured as if the loan runs 30 years, so a balance will be left at maturity.
- Prepayment: if you pay it off early, the fee is 3% in year one, 2% in year two, and 1% in year three.
- Recourse: non-recourse, meaning you're generally not personally liable, except for the standard carve-outs like fraud.
- Covenant: the property has to cover its debt payments 1.25 times, checked once a year.

This isn't a commitment to lend. It says so in the document.

Things to ask about
- The loan's maturity date (it isn't in what you sent)
- What happens if the 1.25x test is missed

AI drafts can be wrong. Check every fact, name, and number before you send anything. Free: build prompts with no limit and 5 AI runs a day. A paid plan: 100 runs a day, 1,000 checks a day, batch runs for 50 contacts.

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