Yield Maintenance Question

[Morris Cohen]

I have a portfolio of 11 units worth almost $1.1MM. The portfolio consists of six single family properties and one five unit. I received a term sheet froma commercial lender at 5.2% on a 5 year balloon at 5.2% with yield maintenance or 5.5% for a 5/4/3/2/1 PPP. They really want me to take the yield maintenance option though. Has anyone had any experience with yield maintenance? Is it worth the extra 30 bps to have certainty in my prepayment penalty? All the loans I have on the SFRs are Fannie loans (there are others on my credit outside of this portfolio as well) and I need to clear my credit so I can continue to buy more SFRs hence the reasoning for taking a commercial loan. Fannie loans don't have PPPs and I love that flexibility. I have no plans at the moment to make any changes to this portfolio, but five years is a long time and although my plan at this moment is to take this loan to term that may change and I don't want to be charged an arm and a leg to get out of this loan should there be a need; especially if I expect rates to be decreasing over the next few years. Any thoughts or advice would be greatly appreciated.