here's the what the bank offered me for a construction loan. my current mortgage is 5 1/2% fixed 20 year. i can either combine the existing mortgage with a construction loan and finance it at more or less 7%, for 30 years depending on where the rate is at the time. or i can take a second mortgage at more or less 7% for 30 years. the kicker is... all of the loans are balloon loans, due every 5 years. so, i may lose the 5 1/2% when the balloon on the first comes due in 2 1/2 years. it may be that the rate is higher or lower at the time. of course if it is lower i can combine all of them at the lower rate. in the meantime, what should i do? the payment comes out to within a few dollars of each other, no matter which way i do it. either i make one payment, or two. TIA!! y'all.