This is not simply a decision based on financial issues .....the other question you need to ask yourself: will be staying in this particular house for XX years...and in my estimation XX should be at least 10 years if not more than 15.
WHY: In todays market you will rarely (never say never but that is what I want to say) recover the cost of prepaying the bond. A Paid Bond may make you house more attractive for potential buyers but you would be amazed how many people buying houses here in The Villages have no idea what a bond is ...they simply look at layout (style), location, and asking price and or negotiated price.
The pros of paying off the bond are: peace of mind having the Bond paid and you get a lower tax bill in November.
The CON is YES you pay more money (over a 30 year period a $20K bond probably costs you $40K) and you have to budget for an additional expense come November. ...but if you sell the home a few years after purchase and prepaid the bond, it will most likely cost you much much more real money already spent.
|