Help, which refi option would you choose and why?

[Shaun Carl]

So we are about to Cash-out refi two of our rental properties in a blanket loan. We hold both of these in an S- Corp and have had them for a little over a year. We paid cash for them. All in about 110k total. They are both 4 units. They still need to be appraised, but I am assuming they will appraise for about 150k.

Rates seemed a bit high. Not sure if this is because it will be through the S-Corp and they are commercial. 

Which option would be the best and why?

LTV: 70% of appraised value

Option1: A fixed rate of interest of 5.25% for the first five years. Standard Rate Call Provision to apply to years six through ten.

Option 2: A fixed rate for ten years 6.25%

Term of Loan: 10 years

Amortization: 20 years

Thanks!