If you stay in the house for 15 years, the payments you made will have been enough to pay off the bond but you will still have a substantial balance remaining. If you can estimate how long you will stay in the house, the future value of the money you will have used to pay off the bond, and the future value of investing the annual savings (from paying off the bond), you can at least start to collect numbers to make a rational decision.
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Originally Posted by 784caroline
My point was if your receiving less in interest than what you are paying on the bond (probably between 4-5%) it may be wise to pay it off. Who knows where interest rates on CDs next month never mind 5 years out..
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