Takeout Mortgage Loan
Definition
- A long term mortgage loan that is advanced to a borrower on the completion of construction or in compliance with any other conditions in the loan commitment. The funds are typically used to pay off or take out the construction lender.
Synonyms
special condition loan, long term loan
Related Terms and Acronyms
- Commercial Loan — Definition,
- A loan taken out by a business.
- Construction Loan — Definition,
- A short-term interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
- Construction to Permanent Loan — Definition,
- A loan that finances the construction, then for a long-term, traditional mortgage, as distinct from a construction loan followed by a separate mortgage loan.
- End Loan — Definition,
- The final mortgage on a property, as opposed to a construction or other interim loan.
- Interim Financing — Definition,
- The availability of funds on a daily basis to assist a developer with financing for a construction project between advances made by the lender of the construction loan.
