End Loan

AAA

DEFINITION of 'End Loan'

A permanent, long-term loan used to pay off a short-term construction loan or other form of interim financing. Although an end loan can have interest-only or other features that delay the repayment of principal, at some point, an end loan begins to amortize. This differs from construction loans or other forms of interim financing, which are typically interest-only loans that require full repayment of principal and accrued interest only upon disbursement of funds from the end loan.

INVESTOPEDIA EXPLAINS 'End Loan'

An end loan might be part of a combination or construction/end loan, which allows a borrower to deal with only one lender, file only one credit application and generally pay only one set of loan settlement costs. However, there are also disadvantages to dealing with only one lender in a combination or construction/end loan, such as being unable to shop around for the best deal after the interim construction financing. A borrower should carefully weigh the benefits of a combination/end loan against the risks.

RELATED TERMS
  1. Amortization

    1. The paying off of debt in regular installments over a period ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Floor Loan

    In real estate construction, the minimum loan that a lender agrees ...
  4. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  5. Interest-Only Mortgage

    A type of mortgage in which the mortgagor is only required to ...
  6. Gentrification

    Gentrification refers to when a neighborhood or city undergoes ...
RELATED FAQS
  1. What criteria does a property need to meet to be considered an 'investment grade' ...

    A property is considered to be investment, or institutional, grade if it attracts the attention of large institutional buyers, ... Read Full Answer >>
  2. Why should you invest in tangible assets?

    Savers who deliberately buy tangible assets for investment purposes value their tangible goods as a form of value diversification ... Read Full Answer >>
  3. What role did securitization play in the U.S. subprime mortgage crisis?

    The securitization of subprime mortgages into mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) ... Read Full Answer >>
  4. Which asset classes are the most risky?

    Equities is the riskiest class of assets. Dividends aside, they offer no guarantees, and investors' money is subject to the ... Read Full Answer >>
  5. How can you use a debt service coverage ratio (DSCR) to evaluate real estate investments?

    Historically, real estate has been an attractive way to achieve portfolio diversification for a wide range of investors due ... Read Full Answer >>
  6. Are all mortgage backed securities (MBS) also collateralized debt obligations (CDO)?

    Mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) are different concepts with frequent overlap ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    4 Steps To Attaining A Mortgage

    It starts with knowing your choices as well as your price range. We show you how to get there.
  2. Economics

    How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.
  3. Personal Finance

    Understanding Your Mortgage

    We walk through the steps needed to secure the best loan to finance the purchase of your home.
  4. Investing

    REITs 101: How They're Regulated

    Here's everything you need to know about REITs in less than five minutes.
  5. Professionals

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.
  6. Investing

    The 10 Biggest REITs in the U.S.: Dos and Don'ts

    Five of these REITs may offer potential over the next 1-3 years. Be careful with the other half.
  7. Mutual Funds & ETFs

    Non-Traded REITs: Risks and Rewards

    An overview of the risks and rewards of non-traded REITs and how they compare to exchange-traded REITs.
  8. Investing

    Top Alternative Investments To The Stock Market

    Dislike the stock market or want greater diversity? Here are some alternatives.
  9. Mutual Funds & ETFs

    At Look at REITS vs. Real Estate Mutual Funds

    REITs and real estate mutual funds have their differences, but they both offer liquidity and easy access to diversified real estate assets.
  10. Mutual Funds & ETFs

    Investing in REITs: What You Need to Know

    Thinking of investing in REITs? Here's what you need to know first.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center