Using the amortization table for District 10, Unit 193, the bond payment is a little over $1700 per year for 30 years. For 2017 that breaks out at $334.98 for principal, $1267.66 for interest and $109.58 for administration cost. Just like a mortgage, the interest paid way exceeds the principal in the first nearly 20 years of the bond payments.
Over the thirty years a person would pay $22,534.28 for principal, $25,520.36 for interest, and $3,285.79 for administration cost for a total of $51,340.52.
Those are the numbers to consider whether to pay off the bond taking into consideration the interest is not tax deductible. If a person wants to deduct the interest, it might be better to take out a home equity loan and pay it off over time if the house is a "forever" home. A paid off bond in a new area will not be recouped if a person sells the house in the first few years.
__________________
Indiana, Virginia, Vietnam, Tennessee, Indiana, Alabama, S. Korea, Georgia, Washington, Hawaii, Washington, Indiana, Osceola Hills
|