Mortgage Out

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January 1, 1 6 min read Definitions

Mortgage Out Financing Developers Loan Commitment Construction Loans Real Estate Development Loan-to-Value Ratios Capitalization Rates

Mortgage Out refers to the practice of obtaining financing in excess of the cost to construct a project. During periods of relaxed monetary policy, developers could mortgage out by securing a permanent loan commitment based on a higher percentage of a project's completed value, allowing them to borrow more than the development costs.