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One of the major differences between typical residential mortgages and typical commercial mortgages is: Commercial mortgages usually restrict prepayment or have some sort of prepayment
One of the major differences between typical residential mortgages and typical commercial mortgages is:
Commercial mortgages usually restrict prepayment or have some sort of prepayment penalty/fee, whereas residential mortgages usually do not restrict prepayment. | ||
Commercial mortgages are never done for a 30 year term whereas this is typical in residential | ||
Only residential mortgages are secured by the property itself | ||
Commercial mortgages are interest only and residential mortgages are amortizing. |
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