20 year note with 3 year ballon

[Jeff B.]

I am in in process of purchasing my 3rd rental property, a duplex, which I'm supposed to close on 8.1.16. My other loans have been traditional 30 year, but I networked to a local bank where I was trying to build a relationship to hopefully simplify future purchases. All was good, but the banker is trying to sell me on a 20 year note (which i was good with) that includes a 3 year ballon. The interest is a touch higher @ 1.5 points than a standard 20 year note and the bank re-fi's at the end of the 3 year period at the then rates which will they then will re-fi for 17 years. The only advantage to using them, is that they do not care if, at a later date I quick claim this property into a LLC that I'm considering. Most banks frown upon this and might call the loan. Any advice..I'm in a world I'm not familiar with and could use some help.