Take-Out Lender


DEFINITION of 'Take-Out Lender'

A type of financial institution that provides a long-term mortgage on property. This mortgage will replace interim financing, such as a construction loan. Take-out lenders are normally large financial conglomerates, such as insurance or investment companies.

BREAKING DOWN 'Take-Out Lender'

Take-out lenders replace short-term lenders such as banks or savings and loans. These entities usually view the properties for which they provide mortgages as investments. They expect them to provide capital gains when they are sold, in addition to receiving the mortgage payments.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Lender

    Someone who makes funds available to another with the expectation ...
  3. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  6. Conglomerate

    A company that owns controlling stake in a number of smaller ...
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