Input on refinancing into a rate swap loan program

[Chase Gochnauer]

Hello all,

I have a lot of loans that are 3 years into their 5 year fixed period. I am looking at refinancing them and my banker provided me details on a rate swap, "Assumable Rate Conversion". I'm trying to educate myself on these loans to determine if it is something I want to do.

I can get a 5.36% rate for 20 year fix and 20 year amortization. The initial hedge rate is 2.82% and the loan spread is 2.5%. The loan amount would be a minimum of $1.3m, all of the way up to $3-$4m depending on how many I refinance.

There are prepayment penalties or gains based on the interest rate changes. 

It seems like a no-brainer if I chose to hold for a long time. However, if rates decreased, I'd be in a predicament where it would be quite expensive to refinance. 

Have others went with this type of loan, what are your thoughts on it?