Debt Service: Impact of Amortization Little John Investors owns a 30,000-square-foot big box store on a triple net lease to King Size Lots. The property is subject to a ten-year 7 percent interest-only loan with an original principal amount of $5 million. This loan has eight years to maturity. The bank has offered the group a new tenyear loan with proceeds equal to the old loans outstanding balance at 5 percent requiring 25-year amortization. If maximizing annual cash flow for distribution is Little John’s only criteria, should they take the new loan?