Applications of Commercial Mortgage Loans
Common applications of commercial mortgage loans include acquiring land or commercial properties, expanding existing facilities or refinancing existing debt. Common commercial properties are zoned for office, retail, & industrial purposes.
Commercial premises are purchased for many reasons. One may require bigger premises to cope with expansion, or you may be buying property, whereby the property is directly linked to a business e.g. a hotel. Commercial Mortgages are usually made with terms less than 10 years, but may be much longer than this. The Property itself is usually at risk if payments are not made on time.
Commercial Mortgages are often used for a variety of purposes::
- To purchase the premises of the business.
- For the extension of existing premises.
- Residential and commercial investment.
- Developing the property in other manners.
Read more about this topic: Commercial Mortgage
Famous quotes containing the words commercial, mortgage and/or loans:
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—Marshall McLuhan (1911–1980)
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—John Kenneth Galbraith (b. 1908)