- A type mortgage used to purchase or refinance commercial property. In addition to purchasing and refinancing commercial, industrial, multi-purpose, and office buildings, Commercial mortgages can be used to finance renovations, franchising, expansion, and other company expenditures.
Related Terms and Acronyms
- Application Fee — Definition,
- What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Blanket Mortgage — Definition,
- A mortgage that covers more than one property owned by the same buyer.
- Bridge Financing — Definition,
- A short-term, high interest loan that allows a seller to purchase a new property before selling an existing property.
- Bridge Loan — Definition,
- A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
- Business (busn) — Abbreviation,
- Economic activities of a given type.
- A company, either for-profit or non-profit.
- Commercial, industrial or professional activities undertaken by an entity.
- Cooperative Mortgage — Definition, Important,
- A loan that allows the borrower to buy into a co-op project.
- Corporation — Definition,
- A legal entity that is legally separate from its owners and employees.
- Incorporated Business — Definition,
- A company that exists as a corporation.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Non-recourse Debt — Definition,
- A loan secured by collateral where the borrower is not personally liable.
- Self Employed Person (SEP) — Acronym,
- A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
- Small- and Medium-sized Enterprises (SMEs) — Abbreviation,
➥ A term widely used by the World Bank and the World Trade Organization (WTO).
- Limits banks place on businesses to determine there size.
- Sole Proprietorship — Definition,
- A business owned by an individual where no legal distinction is made between the business and the owner.