Your loan term is the amount of time it will take you to pay off your commercial mortgage according to the conditions established between you (the borrower) and your lender. The length of the loan term will affect the interest rate that a commercial lender will charge you as a borrower for the mortgage on your investment property.
The terms of commercial loans typically range from 5 years (or less) to 30 years. In general, you will pay a higher interest rate if you seek a longer-term loan: For example, you would likely pay a higher interest rate on a 15-year loan than on a commercial mortgage with a 7-year term.
The loan term and amortization schedule offered to you by a commercial lender translate directly to:
1.) how much you pay with each loan payment; and
2.) how long you pay back your commercial mortgage