Commercial Loans - ELI5
I'm researching commercial loans and how they work. I understand that a majority of them carry a 5 year balloon AND an amortization period (usually 30 years). What's the purpose of having the balloon payment? If I refi to a different lender, wont they have a balloon payment period as well?
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@Junaid Anwar - commercial loans come in many flavors. For 1-4 unit properties terms can be 3,5,7,10 even full 30 year fixed. Some balloon and some just become ARMs . It depends on the lender and what programs they offer.