Investopedia

Continue to Site »

Bullet Repayment

Filed Under »
Dictionary Says

Definition of '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 terms of the loans.
Investopedia Says

Investopedia explains 'Bullet Repayment'

For example, when a person has a five-year mortgage which is paid off in a lump sum at the end of the five-year term, this payment is considered a bullet repayment. Generally, the borrower only pays interest during this time, while the principal balance of the loan is due at the end of the term.

For large loan amounts, such as mortgage loans, refinancing is usually required in order to pay the entire bullet repayment amount.

Articles Of Interest

  1.

    Mortgages: Fixed-Rate Versus Adjustable-Rate

    Both of these have advantages and disadvantages depending on your financial needs and prospects.

  2. Mortgages: How Much Can You Afford?

    Answering this means number-crunching as well as factoring in other considerations and expenses.

  3. 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.

  4. When (And When Not) To Refinance Your Mortgage

    There are both good and bad reasons to refinance. Learn more about both here.

  5. Can You Live A Debt-Free Life?

    Avoiding loans goes against the norm but it can be possible - and enjoyable.

  6. Interest-Only Mortgages: Home Free Or Homeless?

    These loans can be beneficial, but for many borrowers, they present a financial trap.

  7. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  8. Payday Loans Don't Pay

    Hold too tightly to this rescue line and you'll soon be drowning in debt.

  9. You CAN Afford To Study Abroad

    Before you jump on the plane, understand the rules and regulations in place. Then, enjoy your time studying aborad!

  10. Lending From A Loan Officer's Perspective

    Learn how a loan officer thinks, so that you can get the best and safest loan.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center