what is a bullet repayment 
a bullet repayment is a lump sum payment made for the entirety of an outstanding loan amount usually at maturity it can also be a single payment of principal on a bond in terms of banking and real estate loans with bullet repayments are also referred to as balloon loans these types of loans are commonly used in mortgage and business loans to reduce monthly payments during the term of the loans a bullet repayment due at a loan s maturity often necessitates advanced planning to have a refinancing facility in place unless borrowers have the cash to pay off the large lump sum 