Commercial Mortgage
A commercial mortgage is a type of loan specifically designed for businesses and investors to purchase or refinance commercial properties, such as office buildings, retail spaces, industrial warehouses, or apartment complexes. Unlike residential mortgages, which are tailored for individuals buying homes, commercial mortgages cater to entities looking to invest in or operate commercial real estate ventures. These loans typically come with longer terms, ranging from five to 25 years, and higher interest rates compared to residential mortgages, reflecting the greater risks associated with commercial properties. Lenders assess the viability of the property, the creditworthiness of the borrower, and the potential income generated by the property when determining loan terms and amounts. Commercial mortgages play a pivotal role in facilitating business expansion, property investment, and economic development.
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