Quote:
Originally Posted by naneiben
Agree, but your math may be a bit off. The interest actually is higher than the principal in our case. I just looked at my amortization schedule for a villa we have.
The bond principal = 11,929
Interest over 30y = 14,047
Admin costs. =. 1,658
Total. = 27,635
The interest rate = 6.125
Also, not deductible on federal taxes.
Amortization tables are available at districtgov.org .
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This piqued my curiosity since the above villa is on the low end of the spectrum. So, just for kicks, I went in and checked some numbers for a premier home with a bond of 50,485...
Interest = 59,448
Admin fees = 7,016
Total cost of bond = 116,949 ( over 30 y)
Interest rate 6.125
So, kstew, you're right--bonds are VERY lucrative.