My questions are, what is the most prudent thing to do with the $41,000 I just saved by year 5. Is the risk worth the $41k. The risk being an extra $800 in payments starting at year 6.

1) Should I have paid it in $6k monthly payments thus saving 2.5% in interest over 5 yrs?

2) Should I have stuffed that extra $4600 per month into a savings account and pay it in a lump sum at year 5 while making interest on it for the previous 5 years.

3) If I make the minimum payments on both loans what year is the break even point? simple math puts it at 9.5yrs, but I’m dealing with interest so this is were it gets tricky for years 5,6,7,8,9 and 9.5.

4) I hope to have it paid off by before the break even point so I could easily leave $10’s of thousands on the table by not choosing the correct mortgage.

5) I’m assuming all hell breaks loose and the worse case scenario happens: I start paying 7.5% interest on the remaining balance at year 5. (That’s actually not to bad historicly, so all hell breaking loose isn’t as bad as it seems)