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bullet loan - 1 dictionary result
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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.

Investopedia Commentary

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

Related Links

100% Mortgages: The Low Down On No Money Down
Mortgages: The ABCs Of Refinancing
Paying Off Your Mortgage

See also: Amortization, Bullet Bond, Bullet GIC, Bullet Repayment

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