Master Bullet Loans: Your Ultimate Guide to Financing with No Amortization
What is a Bullet Loan?
A bullet loan is a type of loan that comes with a specific term, usually between 5 and 10 years, and where no principal payments are made over the course of the loan term. Instead, the entire principal amount is due at the end of the term. These loans can be appealing due to their lower initial payment requirements, but they also come with significant risks.
Key Features of Bullet Loans
- Term Length: Typically 5 to 10 years.
- Interest Payments: Usually, borrowers only make interest payments during the loan term.
- Lump-Sum Repayment: The full principal amount is due at the end of the loan period, often called a
Related Terms: term loan, interest-only loan, balloon payment, refinancing, amortization.
