What is a commercial mortgage?

A mortgage drawn to support the acquisition or the refinancing of a commercially zoned property (like a warehouse, mall, or office facility) is usually called a commercial mortgage. A mortgage lender (creditor) is compensated for extending the credit by charging the borrower (debtor) interest. A mortgage is a type of loan secured by real property.

What is'mortgage'?

What is 'Mortgage'. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property free and clear. Mortgages are also known as "liens against property" or "claims on property.". If the borrower stops paying the mortgage, the bank can foreclose.

What is a mortgage loan?

The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest.

What is a conventional mortgage loan?

Conventional mortgage loans are not part of a specific government loan program. These loans can be conforming, meaning that they adhere to mortgage rules set by Fannie Mae and Freddie Mac, or nonconforming. Private mortgage insurance may be required for conventional loans when the borrower puts less than 20% down. 4