seems like you have a good nest egg - I would go with taking care and getting rid of the smaller loan with the higher interest rate - then when done with that small loan, whatever that X dollar amount is, plus (+) the extra $500, and put the WHOLE amount (Obtion B loan + $500) and put that towards the BIG loan and clear that huge loan WAY FASTER!!!!
Instead of having that huge mortgage for 30 years, you could cut that down HUGELY!!!!
Good luck and hope that helps