How to Calculate your Commercial Mortgage

Usually the Interest Rates for a commercial mortgage is Depends on your credit score but around 10 to 12%.

Commercial Mortgage Calculation Methods

My bank wants to use the 360/365 method to calculate mortgage interest:

Rate ÷ 360 × Loan Balance = Per diem interest

But some of my research indicates that the 360/365 method, while widely used for business loans, is not used for mortgages. Instead, commercial mortgages use the 360/post method, which although more complicated, saves the borrower both principle and interest over the life of the mortgage.

My bank says the 360/365 method is their usual method.

Is it considered accepted practice for commercial banks to use this mortgage calculation method?Is there anyone knowledgeable out there about this who can shed some light?

An interest only mortgage,is a loan type that allows a borrower to make payments that consists only of the interest. The borrower is given the option to pay only interest for a certain period of time. Usually the interest only period is for the first few years, but borrowers are allowed to pay back parts of the principal if they have the money to do so.

Interest Only Mortgage loans are not to be taken if you do not have the need to. You must layout a plan of payment before taking this type of loan in order to minimize the risk. This type of loan has many benefits and will help you do a lot more with your business if you know how to use it.

Interest only mortgage loans are not suitable for every kind of borrower. It should be only used if you have a proper reason to pay the interest at first. This is suitable for people who have incomes that are not stable. When they do not have enough money to pay principal and interest, they have the option of paying just the interest. When they do get enough money they can pay back as much principal as they like.

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