Talk of The Villages Florida - View Single Post - Bond Pymt?
Thread: Bond Pymt?
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Old 08-16-2009, 08:40 PM
downeaster downeaster is offline
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Quote:
Originally Posted by Peggy D View Post
If not paying off the bond, wouldn't it make sense to get a home loan to pay it off?

Interest is less and can be used as a tax deduction.

We are considering this.
It is certainly worth considering, Peggy. In most cases paying it off with a home equity loan makes a lot of sense. A while ago I checked and the bond interest was 6.5% and home equity loan 4.5%. Even if one does not itemize they benefit by making the loan to pay otf off.