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 11-29-2023, 08:41 AM
Bill14564 Bill14564 is offline
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Quote:
Originally Posted by Altavia View Post
Do you like earning interest?

If you had a 3% mortgage today, would you pay it off?

Unless you kept that bond money under a mattress, you'd earn more interest investing it.
As I asked another poster, what would your calculation have been over the past five years when CD rates were below 3% or in the past few years when market returns were at or below zero? Today, investing the money rather than paying off the bond makes sense. Yesterday not so much and tomorrow is anybody's guess.

Also, don't forget to include the admin fee in the calculation of effective interest rate.
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