Quote:
Originally Posted by TNLAKEPANDA
When is the best time to pay off your Bond? Anyone know for sure?
I know that realtors do not recommend paying off the Bond... however the
Interest is around 6% which is very high.
Thanks
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This question comes up often. If, you call your bank they will tell you the phone number of the office that administrates the bond. I wish I had the number to give you. They were helpful and can give your the right answer to your question as to when. The question is when the interest is applied.
As you will see from other posts, to pay it off of not is not that simple. Is the payment deductible to you? Where will the money come from to pay it off and what are you earning on that money? As to the 6%, it is not negotiable. I may be wrong but we bought new about 8 years ago and it was 5%. On a resale, it may be lower. Do not act on my advice without checking but, I was told the interest rate will renegotiate in two years.
Others posted that the realtors tell you if you pay off the bond you will not get anything more when you sell. In my mind that is a Villages rumor. Think, when you sell you are selling to one person not an average. Say you have a pool. It cost you serious money.
If, I was buying your home I would not want it. Someone else may be thrilled. Same is true of all the commonly done things, landscaping, etc. As to the bond, if I was buying a resale and the bond was paid, it is an added value. If, for example a home needs a roof you would lessen your offer compared to a home where they have a more recent roof.