Commercial mortgage - length of term

[Michelle R.]

We have two different deals going. The first, is a commercial mortgage where we will owner occupy. The options for terms the bank has offered are:

• 7-year with a 25-year amortization

• 10-year with a 25-year amortization and blended with a Straight 20/20

• 25-year with a 25-year amortization and blended with a Straight 20/20

I don't understand what the last two mean. Could someone please explain it to me?

The other deal is a commercial mortgage on a flex/retail strip. A different bank said they don't really like to do 10 year fixed (they are more 'comfortable' doing 5 year fixed), and that they don't do loans longer than 10 years. They would do adjusting every 5 years, with 25 year amortization, balloon in year 10. OR they can 'maybe do' if the banker's superior loan officer approves it, a 10 year fixed, with 25 year amortization (also balloon). Should I be looking elsewhere on this one? Would prefer to not have balloon in year 10 as I foresee holding this property very long term.