Quote:
Originally Posted by sunnyatlast
This is just my opinion. I would leave the bond alone and pay down the mortgage. There are unforeseen reasons that could cause you to want to sell the home sooner than you think. We've seen that happen due to aggravating neighbors, good neighbors move away or die, maybe the market value goes up to an all time high and you can make a good chunk of money by selling it at a certain point in time. And if you sell, the buyer assumes the remaining bond debt.
If you pay down your mortgage, you have equity you can use if you want to buy a different place or take out a home equity loan for something you need/want to do. If you pay off the bond, the money you spent on it is gone.
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I do not understand why people feel that a bond is something we need to accept. Every year it is money down the drain. It's not tax deductible so why keep it ? Even if it were, why keep it ? I feel it's an unnecessary expense. I don't hold a mortgage on my retirement house, why should I carry a bond ? That 23K is gonna cost me double and that $1700 per year could go to something beneficial to me, not some bond holder. Just my simple approach to a personal finance situation. I can sleep at night better knowing I owe no one.