My wife and I both have about $60,000 in student loans ($120,000 in total). 1 year ago we refinanced with Sofi to lock in low fixed rates on a 7 year term (3.88% for me and 4.00% for her). Our monthly payments are $890.03 and $895.11 respectively. We can afford these amounts without straining any part of the budget.
I checked on refinancing the loans again and rates have stayed about the same. The refinance options for my loan are:
5 year - $1,064/mo - 3.5%
7 year - $799/mo - 3.86%
10 year - $608/mo - 4.375%
15 year - $465/mo - 4.865%
20 year - $406/mo - 5.365%
For ease of this evaluation, I am just doubling my loan quotes to account for hers, with the understanding it might be off by +/-$20/mo if she gets a slightly higher rate again.
5 year - $2,128/mo - 3.5% ($343 more/mo)
7 year - $1,600/mo - 3.86% ($185 less/mo)
10 year - $1,216/mo - 4.375% ($570 less/mo)
15 year - $930/mo - 4.865% ($855 less/mo)
20 year - $812/mo - 5.365% ($973 less/mo)
We have other debts (mortgage on principal residence at 3.5%, heloc on principal residence at 4.0% variable, mortgage on rental property at 4.0%, rental property PMI at $190/mo until I get another $13K in principal paid down), and we currently max one 401k and put just over $10k/year in the other.
My thoughts are to refinance to the 20-year loan, max the second 401K (using about $500 post-tax dollars/month) and target the rental property with rest $473) until the PMI is paid off. Once the PMI is paid off (about 2 years), I knock out the HELOC before returning focus to the student loans. I think this is the most effective approach, but would like to hear the thoughts of those that are brighter than I.
I am not asking for a full case study here, just thoughts on this approach using the closed-universe of these funds and the information provided.
Thanks in advance