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]
- Global financial instability: framework, events, issues – www.aeaweb.org [PDF]
- Financial counseling, financial literacy, and household decision making – books.google.com [PDF]
- Payday loans and credit cards: New liquidity and credit scoring puzzles? – pubs.aeaweb.org [PDF]
- An economic analysis of student financial aid schemes – www.jstor.org [PDF]
- Student Loans: Are They Overburdening a Generation?. – eric.ed.gov [PDF]
- Does generosity beget generosity? Alumni giving and undergraduate financial aid – www.sciencedirect.com [PDF]
- Educational debt burden and career choice: Evidence from a financial aid experiment at NYU Law School – www.aeaweb.org [PDF]
