Commercial Loans - ELI5

[Junaid Anwar]

I'm researching commercial loans and how they work. I understand that a majority of them carry a 5 year balloon AND an amortization period (usually 30 years). What's the purpose of having the balloon payment? If I refi to a different lender, wont they have a balloon payment period as well? 

[Ryan O'Mara]

@Junaid Anwar - commercial loans come in many flavors.  For 1-4 unit properties terms can be 3,5,7,10 even full 30 year fixed.  Some balloon and some just become ARMs .  It depends on the lender and what programs they offer.