Commercial Mortgage

Commercial mortgage describes a loan used for the purpose of purchasing or refinancing commercial real estate. The term mortgage implies a lien held on a parcel of real estate and a commercial mortgage is specifically a lien held on a parcel of commercial real estate. A commercial mortgage loan could have been used to purchase the real estate or it could have been placed upon the commercial real estate at some time after purchase as part of a refinancing. Often individuals or businesses seeking a commercial mortgage will use a commercial mortgage broker to help survey the available financing sources and identify the most favorable terms, particularly the most favorable commercial mortgage rate available. A commercial mortgage broker used in this context is often quite valuable to an individual or business seeking a commercial mortgage because of the plethora of sources usually available offering such business loans. A commercial mortgage broker is particularly useful to a purchaser in this context because most often such a broker is compensated by the commercial mortgage lender not the borrower. Like any loan the terms offered by the lender will be determined mostly by the creditworthiness of the borrower and the value of the asset offered to secure the business loan.