Commercial Mortgage and Commercial Loans

A commercial mortgage is used to finance commercial property. The property may have a residence or residences housed within it, such as an apartment building, however the mortgage for this type of property is a commercial mortgage as opposed to a residential mortgage. To obtain a real estate loan of this type you will need to find a lender who is willing to finance commercial property or who offers commercial loans with competitive terms.

A commercial mortgage is considered to be a type of business loan. The credit history and viability of the business dictates the risk and terms associated with any commercial loans and the lenders carefully examine the track record of the business as well as the likelihood of future success. Commercial real estate loans can carry either fixed or adjustable interest rates and either 10, 15, 20-year terms with a balloon payment to end the transaction. At any time you are able to refinance commercial loans for better terms or rates if they become available. A commercial venture comes with risk, however, a well-prepared business plan should alleviate and tend to any areas that can fail.

Commercial mortgages can also be refinanced to obtain second mortgages. Similar to homeowners who apply for a home equity loan or home mortgage refinancing of their first mortgage to capitalize on the cash that is available, commercial equity loans are also available for business needs or for expansion of your business. Because commercial mortgages and commercial second mortgages are tailored to satisfy the needs of the business community, they're the best available option for persons needing financing for commercial real estate ventures.