Savings on monthly out go by consolidation (Example)

Is there any real saving. Check it out.
Now as we have already learnt about loan consolidation, benefits and hitch associated with it in previous post. Now let us be more clear about it with the following examples.
Here it shows what you save on your monthly out go if you consolidate you existing federal loans in to 1 loan.
Suppose if you have 3 loans

Case 1.
Balance of payment is $10000, rate of interest is 6.54% on loan 1 and remaining re payment period is 5 years. Your monthly out go will be $195.
Balance of payment is $12000, rate of interest is 7.94% on loan 2 and remaining re payment period is 7 years. Your monthly out go will be $187
Balance of payment is $15000, rate of interest is 7.14% on loan 3 and remaining re payment period is 7 years.
Your monthly out go will be $227Total out go per month on all three loans will be $615.

Case 2.
Balance of payment is $10000, rate of interest is 6.54% on loan 1 and remaining re payment period is 20 years. Your monthly out go will be $75.
Balance of payment is $12000, rate of interest is 7.94% on loan 2 and remaining re payment period is 20 years. Your monthly out go will be $100
Balance of payment is $15000, rate of interest is 7.14% on loan 3 and remaining re payment period is 20 years.
Your monthly out go will be $118Total out go per month on all three loans will be $293.

Case 3.
Now if you consolidate all of the three loans into 1 loan at interest rate of 7.25% for 20 years. Your monthly out go will be $292.
So if your current scenario is some what similar to Case 1, then loan consolidation is the way you should be going. If you have some kind of cash crunch while paying your monthly re payment amount.
But if you fall some where under case 2, then no need to get consolidated loan as it could help out to make your calculations easy but you would be paying some un necessary fees.All good up to here,
now let me give you a solid reason for not going for loan consolidation even if you fall under Case 1 provided you have enough liquidity to re pay your existing monthly installment
Reason : Case 1 total re payment including interest will be $46476.Under consolidated loan of 20 years for same principle amount will be $70080
So go for loan consolidation only if you seriously need to minimize your current monthly re payment. Still try to keep the re payment years as low as possible (that is 18 years is better than 20 years) so as to minimize your total interest out go.
If you doubt any calculation or want to do some more calculations, go to the following calculator link:http://www.1728.com/calcloan.htm
Decide wisely, All the Best. Keep visiting for more information