We are in our 70's and just refinanced at 2.75% for 30 years. Statistically the market will far out preform 2.75% AND I suspect I will not live 'til pay-off. From a purely logical view, it makes no sense to me to not reap the benefit of OPM (other people's money). On the other-hand, my wife thinks debt-free is better. So far, I've won this battle. It's about your individual comfort zone.
As for the bond, even though the interest rate is higher, I believe that a paid-off bond is not recoverable in resale.
JMHO
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