Commercial mortgage loans are the most common loans used to purchase commercial property for businesses who want to own their own space or invest in commercial property.
They are underwritten according to the appraised value of the building and the attributes of the real estate property, Loan to Value ratios are usually 70 to 75% of the appraised value or purchase price whichever is lower.
The loan is secured by the commercial property being purchased and rent/lease income derived from the property. The underwriting is based on the ability of the borrowers to pay for the mortgage loan. Amortization terms of the mortgage are spread out and usually refinanced or rates are reset for shorter terms.
An example of a common mortgage loan would reset the rates for the principal balance of the loan every 5 years, with an amortization term for 20 years.
Eastern Group Services can provide you with commercial mortgages through our network of preferred lending institutions, with flexible terms, best rates possible faster and efficiently.
Commercial Mortgage Refinancing / Cash Out
Refinancing can be an option to access the excess funds in your commercial property if your property has increased in value, or you have paid the principal down significantly. You may even secure a lower interest rate.
With the cash out feature, you may refinance you mortgage for more than you currently owe and use the difference wherever you want.
At Eastern Group Services, we help our clients work through the various commercial loan financing options available, to determine which is best for them.
Our network of preferred institutions enables us to provide flexible terms and best rates available. Our streamlined loan process reduces paperwork, and get access to cash you need faster and with less hassle.