Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Why Commercial Mortgages Cost More than Residential Mortgage
When you are considering the purchase of a commercial property you will quickly learn that commercial mortgages are more expensive. Understanding the reasons will help you to see why the increased cost is necessary.As you begin to explore your options for commercial mortgages you will find that there are more fees associated with them and the interest rates are greater than a residential mortgage. This could seem surprising at first but understanding the addition risk that lenders are facing with commercial mortgages will help you to grasp why the fees and interest rates must be higher.
The most obvious difference in the two type of mortgage is the dollar amount. The average residential loan in the United States was just over $309,000 in January of 2017 and at that same time period the average transaction for commercial mortgages was $1,100,000. So these much larger numbers represent a higher risk for the lenders. It is a greater sum of money being borrowed so the lender wants to be certain that they will be able to recover their investment if the borrower defaults. In short, lenders look at a higher loan as a higher burden of repayment and also a higher chance of default.
There ... more

__________________________________________________
Are you on The Rain? Grow Your Network!