Commercial Mortgages- Best Help in Commercial Needs

Posted by smotij on January 29th, 2017

Commercial Mortgages are different than residential mortgages because they concern commercial property. They can be used by any kinds of business:

• Industry

• Commerce,

• Office activities,

• An apartment complex etc.

Some commercial mortgages are made just for business use and they can offer many different features in order to best fit a company necessities.Commercial Mortgages are the most common loans and they can feature fixed or variable rates. The best for a business is usually the fixed rate because it makes it easier to make efficient monthly cost planning. Commercial mortgages interest is tax deductible and companies can lower their taxable income. A fixed rate lasts until the maturity (end) of the commercial mortgage, which is generally between 5 and 10 years.

Commercial mortgages are provided by and also from the followings institutions: Banks, Conduit lenders (which can be non-bank financial companies), Government agencies, Insurance companies and mortgage brokers/correspondent lenders. Banks usually offerlower costs than other financial firms but they require more documentation than third party lenders. An option to get multiple quotes from different kind of lenders is through a commercial mortgage broker. In 2013, the 49% of commercial and multifamily mortgages were held by banks. Sometimes it’s possible to negotiate with the right person to get lower costs and it’s important to deal with people that have experience in the specific Commercial Loans you are looking for (for example an expert on office commercial mortgage).

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