For us the decision point is 10 years. If we are staying more than 10 years then it makes sense to pay off the bond and save on interest. If we feel we will be moving in less than 10 years then the pay off amount will be more than the amount we would pay in annual payments.
Good thought about investments too. If you are making more than about 6% on your investments then you would actually do better to leave the money invested and make the annual payments
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