Bullet Repayment

1. A way to structure the repayment of a loan in which the borrower does not pay the principal over the life of the loan, but rather makes a lump sum payment at maturity. This is relatively common in mortgage loans; the borrower pays the interest each month and refinances the house in order to make the bullet repayment at the end of the mortgage term.

2. The lump sum payment in a bullet repayment structure.

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