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Tag: residential mortgage rates

Understanding Why Commercial Mortgage Rates Surpass Residential Rates
Sterling Whitford 19 October 2024 0 Comments

Understanding Why Commercial Mortgage Rates Surpass Residential Rates

Commercial mortgage rates often exceed residential ones due to factors such as risk assessment, loan terms, and property types involved. Commercial loans often come with higher risk and shorter terms, while offering lenders fewer safety nets compared to residential mortgages. Additionally, the diverse usage of commercial properties adds complexity to rate determination. Understanding these differences helps in grasping why commercial loans carry higher charges.

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