| George 2007-07-25, 2:08 am |
| Hi ,
A business, naturally, needs space to operate. And that comes at a cost. Here's the lowdown on the shifting landscape of real estate financing.
Banks offer commercial mortgages and construction loans to business owners who want to own or renovate the space they occupy, as well as to builders and developers. Banks finance commercial mortgages at both fixed and floating rates of interest, though they most commonly make shorter-term, floating-rate loans.
Interest rates for commercial mortgages, which are generally similar to rates for residential mortgages, are based on the creditworthiness of the business as well as the lender's assessment of the loan's risk based on factors such as the company's business model and profitability. Interest rates on commercial mortgages offered by conduit lenders and insurance companies are typically a quarter of a point to 1% lower than on mortgages offered at banks.
Regards
George |