Quote:
Originally Posted by Toymeister
You do get a portion of a paid bond back much in the same way you get other home improvements back. Two homes, otherwise identical, will sell for different amounts for say an enclosed lanai. Two identical homes will not sell for the same if one has a paid bond.
The increased sale amount will not be comps + bond balance just as the enclosed lanai cost is not 'paid' .
I place the savings/ increased sale price at a point that the home must be kept in 7-10 years to break even.
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Whether a bond is paid or not, has no bearing on the appraised value of your home. A bank will not finance a home for more than it is worth. So, don’t think you can automatically sell your home for more than its appraised value just because the bond is paid. The only criteria for paying off a bond is like others have said. Do you get a better return on your investments than the interest rate on your bond? Will you be in your home more less than 10 years? I you answer “yes” to both questions, then do not pay off the bond.