Bullet Loan

What Does Bullet Loan Mean?
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 Terms

Amortization
Bullet
Bullet Bond
Bullet GIC
Bullet Repayment
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Related Links

Mortgages: The ABCs Of Refinancing - Learn how the various reasons for doing it can mean the difference between financial prudence and ruin.
Paying Off Your Mortgage - This may be the biggest debt you'll ever incur. Learn why you should retire it sooner rather than later.
Find The Best Mortgage Rates - Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com. Click Here!

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