What Are Commercial Mortgage Loans?

Commercial mortgage loans are designed for buying property for commercial (as opposed to residential) use. This includes establishing or expanding office space, property investments, and property development.

Residential Loans vs. Commercial Loans

Residential loans, or home loans, apply to any property of four units or less. If a property has more than four units it qualifies for a commercial loan. Commercial mortgage loans are available for different variable interest rates than most residential loans.

Interest Rates on Commercial Mortgages

Commercial loans carry substantially higher interest rates than home loans. Since many businesses fail, and if they don't make profits they are unable to pay back the loan, commercial loans are riskier from the lender's perspective. So in order to calculate the interest rate for a given commercial loan, the lender thoroughly evaluated your business proposal. If you own an established company and it has performed reliably well over the last handful of years, you should qualify for a commercial loan. The standard term of a commercial mortgage loan is 25 years with domestic property, but it can be as short as 10 years depending on the loan.

If you're in need of a business property or want to expand your business then you should look into commercial brokers such as I Loan Resource, which can help business owners find acceptable loans and get them the best possible package for their needs.

At I Loan Resource, only the best lending institutions across the country are included. These companies have undergone a rigorous pre-qualification process and are required to meet strict standards of customer satisfaction. They must thoroughly explain all aspects of the loan and all fees. I Loan Resource helps business and home owners to find just the right lender to provide applicable mortgages for properties, refinances, and equity loans.

If you're concerned about your credit history's impact on your loan, then fill out an online form with I Loan Resource. A specialty representative will get in tough with you and detail your options, even with bad credit.


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