A commercial mortgage is a loan secured by commercial real estate. These includes office building, apartment buildings, industrial properties, retirement homes, shopping malls, strip malls, gas stations, schools , churches, trailer parks, movie theaters, skyscrapers, hotels, motels, manufacturing facilities, resorts and many more.

Commercial Interest Rates

Interest rates on commercial loans are significantly higher than residential loans. Commercial Loan Interest rates can start as high as 11%. Also most commercial loan have adjustable interest rates which can adjust after the first six months of the life of the loan.

Qualifying for a Commercial Loan

Equity requirements on a commercial property are significantly higher than a conventional loan. Most will require at least 30% down to purchase a commercial property.

Commercial Loan Closing Costs

Closing costs on a commercial loan are significantly higher. A typical commercial loan may require up to 6% of the loan balance in closing costs. These include appraisals which start at $2500 for some multi family properties.

Commercial Lenders

There are many commercial lenders. Most lenders are mortgage brokers and they usually obtain their funds from wholesale commercial lenders, investors and insurance companies.

Commercial Mortgage Refinancing

Refinancing a commercial property is also viable option but you may have to pay a pre-payment penalty.

Commercial Mortgage