Commercial loan reset

[Craig McLaughlin]

What is the plan for when commercial loans reset every 5 years?

Backstory: I am still mostly green on real estate investing but I do own 3 rentals. 1 is paid off and I have 30 yr mortgages on the other 2. I know that in 30 years the loans will be paid off and I can choose to cash out refinance or not. On a commercial loan, for a multi-unit property, the most common loan was 20%down, 25 year amortization, and then a balloon/refinance in 5 years. I passed on a 6 unit that did cash flow some; mainly because I believe interest rates are heading up and would hate to have to refinance and be stuck at the prevailing rate in 5 years. Could be 10% or more. Also, 5 years does not allow for significant appreciation in my area. Possibly unable to get financing in 5 years? What is everybody else doing for these concerns? Or just worry about it in 5 years.