Amortization Schedules for Commercial Mortgage Loans

In the commercial mortgage financing world, most commercial mortgages are amortized based on a 25 years schedule.  In contrast, home loans are fully-amortized over 30 years.  If the commercial property is older than 35 years old, a bank may choose to amortize the loan over just 20 years.

Commercial mortgage loans are seldom fully-amortized.  Typically they are partially amortized over a 20 to 25 year schedule and have a term of either 5 years or 10 years.  A ten year commercial mortgage loan is considered a very long term commercial loan.

The typical borrower will be very unhappy if the commercial mortgage lender insists on amortizing his commercial loan on his older property over just 20 years.  The problem is not just the fact that the borrower's payments will be higher.  The shorter amortization schedule will also reduce the size of the loan for which the borrower can qualify.

You can easily choose to submit your loan to another bank if you are using C-Loans.com.