Borrowers need to realize that there are other sources of capital besides their local bank.  Life insurance companies, government backed programs, non bank lenders and foreign banks/lenders can provide some interesting commercial mortgages. 

For example, typical bank commercial mortgages are now limited to 5 year fixed rates with amortization schedules at 15 - 20 years.  On special purpose properties such as hotels, restaurant, most are now only offering adjustable rates.  And of course we're talking about the 10- 20% of the banks that are actually still lending.  The rest are either facing their own cash flow, capital issues or are just waiting it out on the sidelines. 

Some of the non bank options boast fixed periods up to 10 years, with amortization schedules as long as 30 years...  This added security via the long term fixed rates and increased cash flow, by spreading out the amortization schedule to 25 - 30 years, often comes out to an approximate 20% savings in payment.   In addition, most of these sources will not go after side business such as checking or saving deposits. 

There are down sides to many of these programs however, to be fair.  Rates are typically 50 to 100 basis points higher (.5% - 1%) than typical banks loan.  Prepayment penalties are often, more expensive as well, though negotiable.  For many, however the longer fixed periods and lower monthly payments are still very attractive and compel borrowers to seek this route of financing. 

Borrowers should seek out all available option to them.  They maybe pleasantly surprised to find some great commercial mortgages that they didn't think where out there.       

Jeff Rauth is President of Commercial Finance Advisors, Inc.  They close commercial mortgages throughout the US from $400,000 plus.    commercial bank loans,   apartment loan