Which loan option would you take?

[Christopher Freeman]

I have a 6 unit apartment building under contract for $425,000. $50k down, $56,250 from a seller carryback, and $318,750 from a commercial first mortgage.

The carryback is amortized for 240 months but has a balloon after 120 months.

The first mortgage is amortized for 300 months with a term of 20 years. I have the option of 5/1 at 4.35% or 7/1 at 4.6%.

Would you take the 5/1 or the 7/1 and why?