Why use adjustable rate commercial loans???

[Brian Smith]

So I am meeting with the commercial division of my local bank tomorrow. They have done my last three conventional loans, and with my primary residence I am at the limit for 20% down easy money.  My loan officer said they can do more conventional loans (these will be number's 5-10), but they will require 30% down moving forward. So I figured I should pursue the commercial/portfolio loan route for more favorable terms and now I'm second guessing it and here's my reasoning; I'm almost positive this bank (or any others for that matter) will have a max term 5 year balloon. That scares me. What if interest rates climb back up from historic low levels? And if/when they do how much is my 60k house worth? 50k, 40k? Who knows?  So why not lock in a 30 year conventional loan at 4.5% with forced equity of 30% even if it means I'll have to move a little slower.  Outside of real estate investments we are a strict Dave Ramsey no debt household so this decision seems counter intuitive to everything we've worked so hard to accomplish.  I'm wanting to invest in a rental portfolio that will allow me total financial freedom in 5-8 years, which I know will require an aggressive acquisition rate. Decisions decisions... What are your thoughts on leverage and adjustable rates? Thanks in advance for any input!