Get StartedDividerCommercial LoansDividerCommercial Mortgage ResourcesDividerBlogDividerMy Account
FAQ   Contact   Home

Commercial Mortgages

Submit Your Commercial Mortgage Request to the Best Matching Lenders

Featured Articles

Read More Conduit Lenders

Commercial Mortgage Backed Securities are a type of security investment secured by commercial mortgages. CMBS are generated by so-called "conduit" lenders, who originate commercial mortgages with the aim of securitizing them, arrange them into asset pools, and sell standardized sections of these pools to investors....

Read More Read More

Read More Government- and Agency-Sponsored Commercial Mortgages

A variety of agencies participate in lending on commercial properties by insuring commercial mortgages originated and (sometimes) serviced by approved commercial lenders. Some of these agencies are managed by the government, while others merely enjoy certain governmental assistance such as tax deferment or exemption.....

Read More Read More

Read More View all articles

Glossary of Terms Relating to Commercial Mortgages - Selections

Debt Coverage Ratio
The ratio of the income produced by a property to the monthly cost of a loan on the property. For instance, the debt-servicing ratio of a loan requiring monthly payments of $5,000 on a property that produces $7,000 per month in revenue would be 1.40. Also called Debt Servicing Ratio, or Debt Coverage Servicing Ratio.
Declining Balance
A type of prepayment penalty for commercial mortgages, according to which the penalty decreases over a period of time, up until a specified term. For instance, a 20 year loan may have a declining balance prepayment penalty stating that the penalty is 5% of the loan amount for the first year, 4% for the second year, 3% for the third year, etc., until the fifth year, when the borrower has the option of paying the loan off without penalty. If the borrower chooses not to pay the loan off at this point, then the declining balance begins over again. Also called "capped fees".
Deed
The legal document conveying title to a property. Also, Trust Deed, Deed of Trust, Trust Indenture
Default
Failure to meet legal obligations in a contract for a loan.
Defeasance Clause
A type of prepayment penalty according to which the borrower must replace the mortgaged property with Treasury securities of equal yield to the mortgage.