Bullet Repayment

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.

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.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • bullet repayment — A one off repayment of principal on a bond or loan which has not been gradually reduced over a period of time. Related links + bullet repayment USA Also known as a balloon repayment. A single repayment of principal on a …   Law dictionary

  • Bullet (disambiguation) — Bullet may refer to: * bullet, a metal projectile used in a gun * bullet (typography) (•), a solid typographic symbol; called a bullet point in the United Kingdom * Bullet (comic), a British comic published during the 1970s * Bullet (comics), a… …   Wikipedia

  • Bullet — 1) A one time lump sum repayment of an outstanding loan, typically made by the borrower after very little, if any, amortization of the loan. This can also refer to a loan that requires a disproportionately large portion (or even all) of the loan… …   Investment dictionary

  • bullet — 1) A security offering a fixed interest and maturing on a fixed date. 2) The final repayment of a loan, which consists of the whole of sum borrowed. In a bullet loan, interim repayments are interest only repayments, the principal sum being repaid …   Big dictionary of business and management

  • Bullet Bond — A noncallable regular coupon paying debt instrument with a single repayment of principal on the maturity date. Sometimes referred to as a virgin bond …   Investment dictionary

  • bullet — A one time repayment, often after little or no amortization of the loan. Bloomberg Financial Dictionary See: balloon payment. Bloomberg Financial Dictionary …   Financial and business terms

  • bullet — / bυlɪt/ noun US a repayment of the capital of a loan when it matures …   Dictionary of banking and finance

  • balloon repayment — USA Also known as a bullet repayment. A single repayment of principal on a bond or loan on the maturity date (rather than gradually repaying the loan in installments over a period of time). See also mezzanine debt …   Law dictionary

  • mezzanine debt — Debt finance that ranks in priority behind senior debt but ahead of trade creditors or equity; often secured and commonly convertible into equity of the borrower. There is generally a bullet repayment and there may be early prepayment premiums.… …   Law dictionary

  • revolving credit — A bank credit that is negotiated for a specified period; it allows for drawdown and repayment within that period. Repaid amounts can be redrawn up to the agreed limit of the credit. At the end of the loan period there is a bullet repayment of the …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”