Quote:
Originally Posted by heims01
Is that something realtors like to tell people to get them to ignore the bond on a house?
I certainly would insist on making a point of it when selling a house that had the bond paid off, especially if the remaining bond was significant. If you look at the amortization tables for the newly refinanced bonds your still paying a LOT of interest in the early years of the bond just like a mortgage. Unlike mortgages, you can't make extra principal payments so you are really paying through the nose if your bond has a lot of years left to pay. IE: Ours were 2020 numbers :
bond balance: $18,499.32
payments for 2020:
$486.46 Principal payment
$1,116.06 Interest payment
$102.29 Admin Fee
$1,704.81 Total payment
$18,012.86 Balance forward 2021
This bond would run through 2039.
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The fact is that many home buyers only look at the asking price for a house. So, if your house is priced at $18,000 more than similar houses, your house will not be as competitive as a house with an $18,000 bond. It will be almost impossible to recover the bond pay off amount. My opinion.