Loan Structures

Loan-structure pages explain how debt is repaid over time, not just how it is priced or approved. The same credit risk can look very different when principal amortizes steadily, stays interest-only for a period, or comes due in one large payment at maturity.

This subsection is useful when readers need to distinguish loan form from borrower quality. It sits next to Credit Score and Debt-to-Income Ratio, but focuses on repayment design rather than underwriting.

The clearest contrasts start with Bullet Loan, Balloon Loan, Interest-Only Loan, and Balloon Payment, because those pages separate lower early payments from the maturity risk they create later.

In this section

• Balloon Loan
  Loan that uses smaller scheduled payments during the term and leaves a large remaining balance due at maturity.
• Balloon Payment
  Large final payment due at maturity after smaller scheduled installments leave part of the principal still outstanding.
• Bullet Loan
  Loan structure with principal generally due in one lump sum at maturity instead of being amortized throughout the term.
• Bullet Repayment
  Repayment structure where principal comes due in one large maturity payment rather than being reduced steadily over time.
• Interest-Only Loan
  Loan structure where scheduled payments cover interest for a period while principal repayment is deferred to later amortization or maturity.