Quote:
Originally Posted by dewilson58
PLUS Admin Fee....................the effective rate is not that good.
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And...while the administration fee reduces as the balance reduces, it doesn't reduce very much. My bond balance is around 7K. Interest rate 4+%, administration fee around $50.
In the last few years of the amortization, the balance gets to 4K, 3K, 2K etc, and the administration fee only goes down a dollar or so. So the effective % compared to the balance gets pretty high.