Find Commercial Loans | RPMGonline

Feb. 4, 2015 - PRLog -- Commercial Loans | RPMGonline

A commercial mortgage is a loan that is secured by a piece of commercial property as collateral. Usually, business owners or entities take commercial mortgages in order to pay for commercial real estate or business property. As in a residential market, mortgage companies compete with one another to win business by offering lower interest rates, reduced fees and better terms on their commercial loans. Compare commercial mortgages by looking at the details in the term of the loan. Here are the first five terms to compare.

Consider the maximum loan term.<Commercial mortgages require a balloon payment, which is a total payoff of the loan, in a specific amount of time. Many borrowers sell the property or refinance the loan at that time.

-          Find a maximum loan term that is longer if you want more time to pay off your commercial mortgage. Most lenders have a term of between 10 and 30 years.

·         Compare the loan to value ratio. Banks usually allow you to borrow up to 75 percent of the value of the commercial property.

-          Choosing a loan that will allow a higher loan-to-value ratio will enable you to borrow more money than a loan with a lower loan-to-value ratio.

·         Look at approval times. You can compare commercial mortgages by asking for an estimate on how long it will take the lender to approve your mortgage.

-          Ask if a committee will need to review your application. This can hold up the approval process.

Ask for a Letter of Intent or Commitment Letter before applying for a loan. A letter of intent will disclose rates and terms and is indicative of a serious lender interest

Ask about the lender's appraisal process. To get a commercial mortgage, the lender will want the commercial property to be appraised

For the best in commercial loans RPMGonline has multiple loan partners, which ensures that your business receives the most advantageous programs and rates.  http://www.rpmgonline.com