Bullet

Just like a “balloon” payment in mortgages, a bullet is a one-time lump-sum repayment of a loan. It "shoots down" the debt you owed.

For example, you might have low monthly payments (or even none) for a certain period of time, but at the end, or “maturity date,” you need to pay back the entire loan.

These types of loans can be useful if you expect your financial circumstances to greatly improve in the future (come onnnnn, Powerball), or perhaps you're just waiting for your current property to sell.