Quote:
Originally Posted by Bill14564
Let me type this more slowly this time: If the bond is not paid in full in advance then the remaining amount of the bond is directly related to the age of the home. One could say the numbers on a calendar have nothing to do with the age of a home, except that as the numbers get higher the home gets older. Likewise, the balance on the bond has nothing to do with the age of a home, except that as the balance gets lower the home gets older.
"It's a mortgage with a different name, folks. Nothing more, nothing less."
- Except the mortgage is directly related to the value of the home - the bond is not
- Except the mortgage on my home is likely different than the mortgage on my neighbor's - the bond is the same
- Except principal on the mortgage can be paid early - principal on the bond cannot
- Except the mortgage must be satisfied for the home to change hands - the bond does not
- Except I can refinance the mortgage to obtain a better rate - I have no ability to refinance the bond
- Except I can itemize interest paid on the mortgage - I cannot itemize interest paid on the bond
Perhaps you meant to say, "It's a mortgage with a different name... except when it isn't"
There are different ways to think about the bond and some are more correct than others.
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So they are the same thing only different?
Does a bond impact your credit score?