Should I refinance commercial loans?

[Jerry Poon]

I have a few commercial loans with 10-12 years left on them. The rates are held for the life of the loan. I asked my commercial banker if there are any ways I can take advantage of the low rates. They said they could lower the rate for them by 1% in exchange for $1k and having the rate hold lowered to 7 years with the rate adjusting annually after that.

I would be saving $2k/year on my monthly payments. I would basically have to count on the interest amount increase to be less than $13k for the last 3-5 years on my loans. It seems like a no brainer to me. Do people see interest rates increasing drastically 7 years from now?

Also, why would the lender be willing to do this if it is such a killer deal for me? They would be making less money per month on me. I feel like I am missing something big here.