|
A commercial mortgage is a mortgage which is secured by real estate which is used by a business. Also, the proceeds of a commercial mortgage must be used for business purposes. Many commercial mortgage lenders require a minimum loan size, often half a million dollars or more. A commercial mortgage may be secured by an on-going business, an apartment building or raw land; a commercial mortgage may even be structured as a construction loan for a commercial building project. A commercial mortgage may be a first mortgage or a refinance of an existing mortgage. When a commercial mortgage is traded or sold on the open market it is called a commercial mortgage security. The opposite of a commercial mortgage is a residential mortgage. |
