Talk of The Villages Florida - View Single Post - Why is the bond the same for new area?
Thread: Why is the bond the same for new area?
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Old 10-21-2019, 04:10 PM
retiredguy123 retiredguy123 is offline
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Originally Posted by dewilson58 View Post
With the admin fee, the effective interest rate is 6%-7%. Good incentive to pay off early.
Thanks for getting me to look at my bond. The current balance on my 4 year old bond is about $15,000. The interest rate is 4.3 percent. When you include the admin fee, the effective rate is only 4.8 percent. That is less than I usually earn on my diversified investment portfolio, so I can't see any reason to pay it off early.