My advice is to pay off the bond, non tax deductible interest, and recoverable in 5-6 years with average 2-3% inflation in the house price. Especially if you want to retire with minimum expenses and want to live in the house for 5 or more years, which is an ideal financial goal. BUT we don't know your financial asset strength, so if you have the full amount and that won't impact your retirement or life style, yes. However, to get the early payoff cash back, you need to have the house sale price to appreciate above your cost+ bond amount by sale time.
The other argument, the reason why people don't pay off the bond early is that new or recent construction appears cheaper as the cost of the bond isn't included in the house sale price, as listed on the county records. Adding the bond to a 1 year old house listed as purchased at $355 K a year ago, and then adding a $30K bond is an instant 10% appreciation of asking price against a 2-3% annual appreciation looks overpriced. . .
Optics of comparison for naive or impulsive buyers, as most house purchases are an emotional decision, with the backstop of the mortgage affordability.. . . the bond doesn't pay into that equation for lenders, and buying emotions . . . behavioral finance 101. . . Amazon shipping is not free, its just bundled in your price, but you can't see it, so you really don't know what it is. . . could be a percentage of the price, which is averaged out over all items forecast to be sold. .
finance guy
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