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Originally Posted by BlueStarAirlines
Risking beating this dead horse any farther.......
A few of the posts in this thread talk about high bond interest rates, but mine its only 3.18% (District 13). My credit union has CDs paying 5.01%. Until those CD rates drop it wouldn't make much sense to use those funds to pay off the bond.
Looking at District 15 their rates are 5.19% for the units listed with their total bonds $50k and up.
When considering a home, it shouldn't just be bond vs no-bond, but also interest rate on the bond.
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True, but you also need to add the admin then calculate the effective interest rate for yourself. Because the admin fee is fixed, its impact on the effective interest rate (or cost of money) increases each year. There may come a point where you are actually paying more than 5.01% for the bond.
(Not to mention that it wasn't that long ago that you were not receiving 5.01% at your bank. Things change and what looks like the smart decision today may not have been the best decision last year, or next)
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Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough
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