Talk of The Villages Florida - View Single Post - Do I get my bond value back if I pay if off early?
Thread: Do I get my bond value back if I pay if off early?
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Old 01-14-2021, 12:24 PM
Aces4 Aces4 is offline
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Quote:
Originally Posted by Bill14564 View Post
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.
Am I missing the interest paid portion of the payments factored in this analysis?