This refers to the lump-sum payment or the final debt service payment that will repay all the remaining principal should the loan term exceed the amortization term. It may also be referred to as a balloon loan, and it is typically utilized in mortgage and business loans as it will help reduce monthly payments during the term of those loans.
Bullet Payment
This refers to the lump-sum payment or the final debt service payment that will repay all the remaining principal should the loan term exceed the amortization term. It may also be referred to as a balloon loan, and it is typically utilized in mortgage and business loans as it will help reduce monthly payments during the term of those loans.
