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How To Get A Commercial Mortgage Today A loan in which real estate is used as collateral - a guarantee that the loan will be repaid and on time - is usually called a commercial mortgage. While it is much like a residential mortgage, the difference is simply that the collateral and the building purchased with the mortgage is used for commercial rather than residential purposes. A loan would be considered a commercial mortgage if, for instance, an entrepreneur were moving from his home office to a storefront ret...

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