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Learn How Commercial Real Estate Loans Work | HuffPost – Unlike residential loans, commercial real estate loans come with two types of terms: intermediate-term loans of 3 years or less and long-term loans that last for 5 to 20 years. Also, a commercial real estate loan might come as an amortized loan–the one you know well–or as a balloon loan.
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Interest rates on commercial loans are generally higher than on residential loans. Also, commercial real estate loans usually involve fees that add to the overall cost of the loan, including.