Reality check please- this is probably a good deal

[Traci Lovelace]

I have a LLC owned house that I'm going to renovate and sell. I've been financing with an equity loan previously, we paid that off with the last sale and would prefer not to get into that again.

Our local bank is happy to lend the $150k at 5.5% interest only loan with a 12 month term.  I was happy with this until they pointed out that I'll have about 5k in closing costs. This includes a 1% origination fee, appraisal fee, flood certification, title services, title insurance and recording fees.  So the total cost to borrow the $ is $12,884.00 

Is this a reasonable offer to me?

Otherwise I have to liquidate some investments, which are earning more than 5.5% but I won't have the $5k in fees nor all this interest. 

I don't know what to do.  

What would you advise?

TIA