[Goldwingnut]

Originally Posted by Jgg7933

Just take a look at how much interest is being charged on the bond and how front loaded it is. I bought 9 years ago with the intent of not moving from my house and paid off the bond immediately. After 8.5 years I am saving tons of money now. Of course if you have plans on moving to another house within 8 years or so from purchase most choose not to pay it off. The realtors are apparently trained to tell everyone to NOT pay it off but I consider that pretty bad advise. Even if selling within 8 years, houses with bond PAID are much more attractive than still having a bond that is almost the same as it started out. Either way, you have to factor in that the bond is part of what you are paying for the house.

Of course the bond looks "front loaded", that is how all loans work, you are paying a given percentage of the outstand balance in interest and a portion goes to the principal.

Is the bond a negative, not really since most homes here in The Villages have them. Not having a bond payment is a definite positive and if all other things on two identical homes are the same, take the one without the bond of course.

I agree with your position of paying off the bond if you are going to stay in the home long term as it will save a considerable amount in interest. Is the number 8 years, longer, or less, that depends on the bond interest rate, finances, and level of pain you are willing to endure paying interest. If you move every couple of years, as some do, paying off the bond does not offer a sufficient payback to justify the expense.