Finance
An Alaska commercial property loan (as opposed to a residential mortgage) is typically characterized by:
ALonger amortization periods and lower interest rates
BShorter amortization periods, higher interest rates, personal guarantees, and recourse provisions✓ Correct
CNo requirement for a down payment
DFixed 30-year terms only
Explanation
Commercial real estate loans typically have shorter terms (5-20 years, often with balloon payments), higher interest rates than residential mortgages, require personal guarantees from the principals, and are recourse loans. They also involve more extensive underwriting of the property's income-producing capacity.
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