Quote:
Originally Posted by petsetc
I think of the bond as an assumable second mortgage that is attached to the house and is not included in the sale price. So as I see it, the actual price of the house is the sales price PLUS the remaining bond balance. Or to put it another way, you must pay the sales price in full PLUS the remaining bond balance in full to claim your house is free and clear.
I do not believe you can recoup the bond pay-off in a resale unless the bond is at the end of its term. I have chosen to think of it as "just one more thing" not to think about except at tax time.
In my limited ownership of 8 years, I do not remember anyone fretting about the bond, one way or the other.
JMHO
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Right. To bond or not to bond is the choice of the buyer in picking a house. If money is no object the buyer doesn't have to blink twice. If every dollar counts each year at tax season, don't buy a house with a bond. It takes about 12 years to have your yearly payment (added to your tax bill) actually go toward principle payment instead of the majority of bond payment going toward interest.
To bond or not to bond is poportionate to your fixed or non-fixed income and a paid off bond can be a benefit. I don't see where it does a lot for sales price in my experience in selling a home in T V.
Where you don't have a bond anymore, the age of a house can mean other costs in bringing a pre-owned home up to date ie: new floors, kitchen, bathrooms, etc. So then it's a wash. However, updates lower the price over all in negotiating price.
Lots to consider so lol circle back it comes back to how much do you want added to your tax bill each year for 30 yrs w interest?