Definition of "Bullet loan"

Gavin Steenwyk real estate agent
Gavin Steenwyk, Real Estate Agent Encompass-Realtors

Intermediate debt (5 to 10 years) without periodic payments but the entire amount (balloon payment) is due at the maturity date. If full payment is not made, the lender may foreclose on the property. Stiff prepayment penalties typically exist.

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