Should I refinance this property?

[Colin Clark]

Hi guys! First time posting here! Appreciate the insight in advance!

I have a property I purchased as a commercial property because of my plans to flip this property into an Airbnb. The terms are as follows:

Owe $234k

5.25% interest rate

30 year term

I was able to find a lender that can get me the following:

4.25% (maybe lower)

30 year term

But the payoff to refinance with the new bank will be an additional 10k if I pay the balance off within 5 years of origination.

Should I take the hit and refinance anyway or stay put?

I plan on Airbnb’ing the property long term but the new lender was also going to switch the loan type from a commercial to a conventional.

My current banker tells me the bank could repossess the house if I switched the loan to a conventional loan instead of a commercial loan.