Talk of The Villages Florida - View Single Post - "No Bond" is promoted in home sales. But what's the real savings?
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Old 11-28-2023, 09:33 AM
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Quote:
Originally Posted by retiredguy123 View Post
I look at it this way. If I pay off a $20K bond, the best I can do when I sell is to break even by getting a buyer to pay $20K more than the appraised value. But, most likely, I will get less than the $20K. And, if the current CD interest rate is comparable to the bond interest rate, it makes no sense to pay off the bond.
The bottom line is financial. Home loans don’t go above appraisals. Bond paid or not paid isn’t consequential to 3rd party observation. Banks don’t give loans above appraisal for good reason. You could ask more, but it really is a buyers market with the supply surplus. At best, you are talking about a carrot on the stick in this market.
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