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A permanent loan lender offered a 5-year $10m interest-only mortgage loan at 6% with $40,000 of origination fees, or a 5-year $15m interest-only mortgage loan

A permanent loan lender offered a 5-year $10m interest-only mortgage loan at 6% with $40,000 of origination fees, or a 5-year $15m interest-only mortgage loan at 7% with $40,000 of origination fees. What is your marginal cost of $5m in additional debt from this lender, and under what main criteria is it an attractive option?

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