When first buying the house, I put more of a down payment toward the mortgage rather than paying off the bond because the bank gave me a lower interest rate for putting a larger down payment. If that had not been the case, I would have paid off bond since rate was much higher than mortgage rate. I recently paid off bond because savings account rates are so low, it was worth it to take money out of savings. I chose bond instead of mortgage because bond rate is higher and not tax deductible. And my mortgage payment will go down whereas if I had paid down mortgage I wouldn't have seen savings until the last year when it got paid off early.
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