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How Much Is The Payoff

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THE SCENARIO A while back, I talked about a note that's available for purchase. As with all notes, however, there's the possibility of the borrower paying it off early. The question: If the borrower owes $44,948.85 on a fully-amortizing note with 99 monthly payments left of $717.35, but they decide to pay it off in 2 years, what will their payoff amount be?

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THE SOLUTION This one has two parts, which are both straightforward.

1. Find the interest rate on the loan
2. Find the payoff amount

First things first, make sure the calculator is using 12 Payments per Year.

Part 1: Interest Rate

N: 99 (The loan has 99 payments left)
I/YR: (This is what I'm trying to find)
PV: 44,948.85 (The borrower currently owes $44,948.85)
PMT: -717.35 (The borrower pays $717.35 per month on the loan)
FV: 0 (The loan amortizes fully)

The borrower's interest rate is 12.00%.

Part 2: Payoff Amount

N: 24 (The borrower will pay off the loan in 2 years, which is 2 x 12 = 24 months)
I/YR: 12.00 (From part 1)
PV: 44,948.85 (The borrower currently owes $44,948.85)
PMT: -717.35 (The borrower pays $717.35 per month on the loan)
FV: (This is what I'm trying to find)

After two years, the borrower will have to pay $37,723.52 to satisfy (pay off) the loan.

What do you think? If you were paying on this loan, would you try to pay it off early, or would you ride it out for the whole 99 months? Why or why not? Let us know in the comments!