Most commercial loans are 5, 7, or 10 year fixed with 20 year amortization. The most prevalent is 5 year. You basically have a 5 year loan that balloons at maturity, but you only pay as if it were a 20 year loan, so your payment is lower. When it balloons, you have a smaller loan the next time which leads to larger profits as long as interest rates donât explode upward. Most residential developers only have construction loans where they pay interest only. Their hope it to sell lots and homes early on to pay off the infrastructure cost, then profit on the back end.