Basically, the bond is nothing more than a loan, with an interest rate and a term over which you will pay it off. There is nothing complicated about it.
If you like the interest rate, and don't mind paying it, based upon your ability to repay the balance comfortably, or not, or your feelings on how you might do investing the money in you pocket if you don't pay it off, you choose to continue owing the balance and paying the interest, or paying it off.
If the house cost 400K with a 40K bond, I would consider the cost to be 440K. If the price of the house was 400K with no bond, I would consider the cost to be 400K...All other things being equal, I'd rather pay 400K.
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