What would you do with this loan?

[Ryan B.]

So I just purchased an old bank built in 1911 that has been converted to a 3 bedroom house. My lender would not let me take a conventional loan (due to building was constructed as commercial not residential property) only an in-house 5 year balloon loan.

Here are the specifics: loan amount is $27,200 @ 6.25%, 20 year amoritization, 5 year balloon.

PITI is $315/month. Rents for $550/month

I am trying to decide if I should pay it off when balloon is due or just refinance it again with another balloon loan. I would have closing costs again, but they were only about $700. Any thoughts would be greatly appreciated as I am on the fence with this one since it is a balloon loan and not a conventional loan.