Assuming term stays the same (I read his post that it does), here are the 2 scenarios, simplifying by assuming rate of 5.25 is effective today:
1) Stick with current loan. P&I of 1546 a month, pays principal down to 271900 over 2 years, meanwhile pays 29K interest
2) Modify loan, get 4.25%, add 2100 to principal. P&I goes to 1388 a month, pays principal down to 272300 over 2 years, meanwhile pays 23.6K interest.
Seems like #2 is a clear winner. Principal is only $400 higher and saves 5400 in interest (maybe pocketing 3600 or so after taxes).
|