Bullet Loan

	Definition of 'Bullet Loan' Any loan that requires a balloon payment at the end of the term and anticipates that the loan will be refinanced in order to meet the balloon payment obligation.
	Investopedia explains 'Bullet Loan' These loans are riskier because the homeowner''s equity in the property doesn''t increase over time.

Related Definitions

Amortization

1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More ...
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Bullet GIC

A guaranteed investment contract (GIC) is purchased with a single premium and only one payout that is made at maturity.
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Bullet Bond

A noncallable regular coupon paying debt instrument with a single repayment of principal on the maturity date.
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- Bullet Repayment
  
  A lump sum payment for the entire loan amount paid at maturity. A bullet repayment is often linked to ballon loans or similar products. Bullet repayments are usually built in to the ...
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- Bullet
  
  1) A one-time lump-sum repayment of an outstanding loan, typically made by the borrower after very little, if any, amortization of the loan. This can also refer to a loan that requires a ...
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When (And When Not) To Refinance Your Mortgage

There are both good and bad reasons to refinance. Learn more about both here.
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The Benefits Of Mortgage Repayment

Buying a home may be the biggest debt you'll ever incur. Learn why you should retire it sooner, rather than later.
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Find The Best Mortgage Rates

Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com. Read More »

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