Get The Latest Commercial Mortgage Rates

Commercial mortgage rates represent the interest and principal charged on a real estate loan that was used as collateral for repayment. In many ways it is similar to your average home mortgage loan with the exception of the fact that instead of the residence being used as collateral, the building or commercial property is used.

Another difference between a commercial mortgage and a residential mortgage is that the loan is taken out in the name of the business as opposed to an individual homeowner. The distinction here being that the borrower can come in several forms depending upon how the business is structured including an S  Corporation, a C Corporation, a limited liability corporation (LLC), a partnership, or a sole proprietorship.

In each and every one of these cases the commercial mortgage rates will be determined by assessing the credit worthiness of the business itself no matter how it is structured and set up. With a residential mortgage, rates are often tied to credit history of the individual that is originating the mortgage.

Commercial mortgages can be used for a number of purposes including the purchase of structures such as office buildings, warehouses, retail stores, real property, etc., etc. In most cases the interest rates on commercial mortgages are higher as compared to residential mortgages and are usually in the form of a fixed rate loan.

While the vast majority of residential mortgages are also fixed rate, usually 30 years in duration, commercial mortgage rates are usually fixed between 3 and 10 years. A much shorter period of time. Commercial mortgages can also have variable rates or capped rates with the interest being based on a pre-selected index such as the LIBOR.

Get the Latest Figures on a Jumbo Mortgage Rate