- A long-term loan that is used to pay off a short-term construction loan. End loans can include periods of interest-only payments, but eventually an end loan will amortize and payments toward principle well need to be made.
final loan, end mortgage
Related Terms and Acronyms
- Bridge Loan — Definition,
- A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
- 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.
- Interest Only Payments — Definition,
- A payment plan where only the interest is paid off.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Takeout Mortgage Loan — Definition, Important,
- A long term mortgage loan that is advanced to borrower on completion of construction or in compliance with any other conditions in the loan commitment. The funds are normally used to pay off or take out the construction lender.