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.


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

  1. Amortization

    1. The paying off of debt in regular installments over a period ...
  2. Bullet Bond

    A debt instrument whose entire face value is paid at once on ...
  3. Bullet Repayment

    A lump sum payment for the entire loan amount paid at maturity. ...
  4. Bullet GIC

    A type of guaranteed investment contract where a single payment ...
  5. Bullet

    1) A one-time lump-sum repayment of an outstanding loan, typically ...
  6. Education Loan

    Money borrowed to finance education or school related expenses. ...
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  1. Do FHA loans require escrow accounts?

    Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >>
  2. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  3. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  4. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  5. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  6. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>

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