Date: January 15th, 2008

Why it’s called a bullet loan: Part 1, the bullet

15 January, 2008 (11:46) | Finance, Markets, US News | No comments

In finance, if the borrower makes interest payments, and then the whole sum becomes due and payable at once (a balloon), it’s called a bullet loan. 

If you have a bullet, you better be able to handle the balloon
 
When I describe such a loan to neophytes, I bring my finger up to my temple, to […]