Talk of The Villages Florida - View Single Post - Do I get my bond value back if I pay if off early?
View Single Post
 
Old 01-14-2021, 07:28 AM
Bill14564 Bill14564 is online now
Sage
Join Date: Nov 2020
Location: Village of Hillsborough
Posts: 7,219
Thanks: 2,238
Thanked 7,630 Times in 2,977 Posts
Default

Quote:
Originally Posted by CoachKandSportsguy View Post

...

So for simplicity, house was purchased for $350,000 two years ago, the bond is $30,000 and the current house price is $380,000. Lets use another $15,000 price appreciation for the next year. I list the house for 399,000 sell for 395,000, gain is $45,000 and the bond paid off was $30,000. so you are still saying that I am not getting my bond money back still?

...
The selling price of the house is $395,000 and the gain is $45,000 regardless of whether you paid off the bond, that is just the market price.

If you paid the $30,000 bond then your net profit on the house is $15,000.

If you didn't pay the bond then you made about $6,000 in payments on that "rented" money over the course of those three years. You passed the balance of that $30,000 bond to the new owner and your net profit is $39,000.

The house sells for the same price either way. The difference is in how much you took out of your bank account during that time.
__________________
Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.


Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough