3 or 5 year Balloon in todays market?

[Chris Aranda]

I'm wondering what investors are doing right now regarding interest rate terms. Example;  3 year is a bit less than 5 year. I'm wondering the risk/reward of locking in the lower rate for 3 years vs. 5 year if the difference is .175. The tempting thought is take the cheaper one and bank in 3 years rates have come down and i can refi. The other though I've had is, its small enough difference, I should go 5 and can always refi before the term if rates have dropped enough to justify. Wanted to bounce that off this crew. Thanks in advance for the thoughts!