BROWSE

Take-Out Loan

What is a '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.

Explaining 'Take-Out Loan'

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.


Further Reading


Investor rationality and financial decisions
www.tandfonline.com [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Global financial instability: framework, events, issuesGlobal financial instability: framework, events, issues
www.aeaweb.org [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Financial counseling, financial literacy, and household decision makingFinancial counseling, financial literacy, and household decision making
books.google.com [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Payday loans and credit cards: New liquidity and credit scoring puzzles?Payday loans and credit cards: New liquidity and credit scoring puzzles?
pubs.aeaweb.org [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

An economic analysis of student financial aid schemesAn economic analysis of student financial aid schemes
www.jstor.org [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Student Loans: Are They Overburdening a Generation?.Student Loans: Are They Overburdening a Generation?.
eric.ed.gov [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Does generosity beget generosity? Alumni giving and undergraduate financial aidDoes generosity beget generosity? Alumni giving and undergraduate financial aid
www.sciencedirect.com [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …

Educational debt burden and career choice: Evidence from a financial aid experiment at NYU Law SchoolEducational debt burden and career choice: Evidence from a financial aid experiment at NYU Law School
www.aeaweb.org [PDF]
… With respect to loans, we found a weak, unexpected, positive relationship between the willingness to take out a floating interest rate loan and expectations about changes in interest rates … 3. If I needed to take out a loan today, I would divide it into the following proportions …



Q&A About Take-Out Loan


What is the new type of take-out loan called?

Zero coupon mortgages are the new type of take-out loan. These require that interest and principal be paid in a single balloon payment at maturity.

What does it replace?

It replaces interim financing such as short term construction loans.

Who can use them?

Commercial real estate such as office buildings or other income producing property.

How are they usually paid off?

They are usually amortizing mortgages with fixed payments.

What is a take-out loan?

A type of long term financing usually on a piece of real property.