Bullet Loan


Definition of "Bullet loan"

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.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Nonforfeitability

provision in a CASH VALUE INSURANCE policy that an insured will receive the equity in some form eve ...

Cash Basis

Method of accounting in which expenses are recorded when cash is paid and revenue is recorded when c ...

Stock Of Housing

Number of housing units of a particular category that are available. ...

Interest Assumption

Minimum rate of return, in life insurance, guaranteed to a policyowner in calculating benefits for a ...

Wear And Tear

Physical decline in a property's value caused from use, old age, and environmental factors. ...

Application

A request for a loan that includes the information about the potential borrower, the property and th ...

Related Real Estate FAQ

How Can I Figure Out My Debt-to-income Ratio?

To figure out where you stand on the debt-to-income ratio, you must first understand the meaning of ...

Do I Need Flood Insurance?

Over 90% of all presidential-declared disasters in the United States are flood related. Leveling for ...

What Are Prepayment Penalties?

A penalty fee charged for paying off a mortgage early, thus allowing banks to still make money off o ...

What Is The Tax Benefits Of Buying A Home?

RealEstateAgent.com calculator estimates the tax benefit of buying a home. Input your loan parameter ...

What Is A Principal?

Principal is the amount of money borrowed and still owed on a loan not including the interest. ...

What Is Equity?

Equity is the financial interest or cash value of your home, minus the current loan balance(s). If s ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

What do Real Estate Attorneys do? What is the Best Time of Year to Buy a Home? What is Hazard Insurance? Real Estate Open House - The Dos and Don Tax Breaks for the First Time Home Buyer

FAQ

What do I need to know about Renters Insurance, and what does it cover? What is a second mortgage? Should I Pay Points for a Lower Rate? What is a balloon mortgage? What is a down payment?