We are within a few years of a ballon mortgage and have started discussing assessments to pay a portion of the outstanding balance down upon it coming due.

I'd suggest that you DO NOT consider a self liquidating mortgage as the prepayment penalty; usally the Yield Maintenance Formula, is a killer if you ever need to refinance.

I'd recommend a 10 year balloon with a 25 or 30 year amortization schedule. You are paying interest on money without gettting any benefit of a reduction of priniciple. The goal is to get rid of the mortgage not have it for life.

Most people think that having a mortgage is a tax deduction. This is crazy. Think about it... You give the bank $100 in interest and the Gov't gives you back $30. Does this make sense? If so send me $100 and I'll give you $30 back. Mortgages are nothing more than Ponzi schemes..

I believe it is better to pay off the mortgage and permanently reduce the maintenances then to carry a mortgage for 50 years and never pay a penny towards the priniciple.

Good Luck...