Quote:
Originally Posted by Villageswimmer
Ours was 6.125%. Yes--not THAT far from 7%. The rates do not change throughout the 30 yr bond life. Look at your amortization schedule. See what the real cost will be. Don't make a decision based on posts here.
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Quote:
Originally Posted by Boomer
You are right. There is no right or wrong answer. It's whatever makes sense to the individual owner who has to think it through. There is a lot of info on districtgov.org and it is all probably there somewhere, but lazy me just called and asked the balance and the interest rate.
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Hi again, Villageswimmer,
I finally took the time this afternoon to delve into districtgov.org where I found the amortization tables. We are in District 7 where our interest rate is 4.25. Our amortization is not quite but almost to the point where half of it is going to the principal. We are the second owners.
We knew about the bond when we bought and knew we would not pay it off because we knew we would not keep the house forever.
Until this thread, I had no idea there could be such a difference in the interest rates on the bonds. When we chose the house, we knew the remaining bond amount, but did not ask about the interest rate. We really like our location in District 7, but had no idea the interest rate on the bond would be rather significantly lower than some.
When it comes to the bond, buyers need to know what they don't know, and as this thread is showing, there is more to it than to pay or not to pay it off. Buyers who want to know more about the bond and all it entails might want to track down those tables and rates by district on districtgov.org.