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10-23-2024, 05:24 PM
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Sage
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Join Date: Aug 2009
Location: NJ, NM, SC, PA, DC, MD, VA, NY, CA, ID and finally FL.
Posts: 7,874
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Thanked 5,110 Times in 1,956 Posts
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Quote:
Originally Posted by Bwanajim
I bought two years ago and my bond was 36K. I’m paying 3.1% interest rate. Why would I pay it off if I’m earning 5% in my investments? And I’ll be dead long before it’s paid off anyway. Let my heirs pay for it. Lol
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Since the interest on the bond is not tax deductible (unless the house is a rental and it is expensed) if your 5% investment income is taxable you are about breaking even, making <1%.
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"No one is more hated than he who speaks the truth." Plato
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