Bullet Loan

Dictionary Says

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 Says

Investopedia explains 'Bullet Loan'

These loans are riskier because the homeowner''s equity in the property doesn''t increase over time.

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Articles Of Interest

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