Take-Out Loan


DEFINITION of 'Take-Out Loan'

A type of long-term financing (usually) on a piece of real property. Long-term take-out loans replace interim financing, such as a short-term construction loan. They are usually mortgages with fixed payments that are amortizing.


Take-out loans can be used for commercial real estate such as office buildings or other income-producing property. Zero-coupon mortgages are a new type of take-out loan. These loans require that interest and principal be paid in a single balloon payment at maturity.

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  3. Standing Loan

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  4. Mortgage Originator

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

    A financial institution licensed as a receiver of deposits. There ...
  6. Balloon Payment

    An oversized payment due at the end of a mortgage, commercial ...
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