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

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  3. Mortgage Originator

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  4. Bank

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

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  6. Conglomerate

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