My goal is to pay the less amount of interest at the end of all of this. What would you recommend? I have 15k to drop into any of my Loans. My idea would be to drop all of that money into the largest sum of money instead of the smaller ones. It would seem I would pay a lot less with that method.
How much I owe from each loan. [MP: Monthly Payment] [IRN: Interest Rate from Now *How much I have to pay in interest from this point forward.]
A. 5.8k @ 6.80% [MP:$101.76] [IRN:$1,224.35]
B. 1.6k @ 6.80% [MP:$50.00] [IRN:$170.43]
C. 5.0k @ 5.95% [MP:$84.35] [IRN:$935.12]
D. 3.0k @ 6.80% [MP:$51.87] [IRN:$645.31]
E. 70k @ 5.65% [MP:$712.79] [IRN:$24,175.10]
F. 14k @ 4.25% [MP:$135.89] [IRN:$3,448.04]
My options would be the snowball method or killing the 70k loan off first. Wouldn't it be better to drop 15k into the 70k loan than paying off the smaller top four loans?
70k - 15k = 55k @ 5.65% [IRN:$13,507.10] This would be the interest with the 15k deducted.
Thus [70k loan IRN:$24,175.10] - [55k loan IRN:$13,507.10] = $10,668 would be different.
I would get to pay less than $10,668 if I put the 15k into the 70k loan. This is huge.
Or the snowball method.
If I kill off the top four loans, their interest from this point on would equal $2,975.21. That's an enormous difference of $7,692.79. [$10,668 - $2,975.21 = $7,692.79]
Please let me know if everybody can understand my question and my math, does it check out correctly? This was the website I used to calculate the final interest amount.
bankrateAlso, one more question. Do you have any recommends on finding or reducing interest rate. I am having difficulties with this and it's killing me. :/
Thank you so much for reading this huge wall of text. All advice is welcome and greatly appreciated.