Mortgage Handbook

Commercial Mortgage Refinancing

Unlike residential mortgages, most commercial mortgage agreements require borrowers to either refinance or pay off their loans at a fixed date in the future.

Many commercial mortgages with a natural amortization period of 25 or 30 years, for example, actually require borrowers to settle their debt after 10 years, either by paying it in full, or refinancing it at the prevailing interest rate.

Rather than refinancing on a forced basis, however, it is a good idea to consult with several different lenders, and keep one's options open so as to benefit from the lowest rate possible.