So i am pretty sure i am going to take the loss and pay down the house first. But just was wondering about my math....

Basically my house loan is a personal one, I rather pay my father $$$ than a bank. He is fine with min payments, or me paying off early. I just would like to know how much am am i losing by paying him off early.

You can view the current Payment plan here.

https://docs.google.com/spreadsheets/d/1Plov-2x9rMKJlVVd8-13nurHPasQn3wJU9MfkU2uT_I/edit?usp=sharingRate = 3.737

Min payment = 1,000

Potential payments = 2,500

Total remaining 54k~

Time for my shady unknown math problem....

So at this current point in time, if i were to pay 2,500$/mo i would save around 3,000$ on interest. The loan would go from 5years to 2 years.

Now say instead, i take that extra 1,500$ and invest it at 3.25% (difference of 7%, my % gained - % paid) over 5 years, it comes out to be 99,902.74$. Or 9,902.74$ in gains.

So 9,900$ - 3,000$ = 6,900$ ....That means i am basically throwing away 6,900$ if i pay off loan early rather than investing.

Or is my math so far off i should be ashamed?