Expert: Mike Fortunato - 12/4/2010

Question
My evil mortgage company "renews" my commercial mortgage every three years.  The first three years are up and I'm having to do a lot of paper work I don't have time for.  Is this three-year thing standard (Alabama)?  If I refinanced somewhere else, would it be the same?  I feel as if the bank could take advantage of me, i.e., make me pay fees or higher monthly payments, and there's nothing I can do about it.  I would appreciate any advice on this you may have.  I appreciate you in advance for this.

Answer
Absent any strange rules in your state, there is no maximum 3 year loan term. Most lenders will have various programs available, depending on the product type. Getting something like a 10 year term should be possible, but note that most lenders will not agree to a term which extends beyond the lease expiration date (naturally that won't apply for owner occupied situations).

So, although lenders would prefer a shorter loan term (less risk, and more fees at refinance), you should be able to shop around for a longer term. Of course, it's a bit more difficult these days as money is tight.