Quote:
Originally Posted by Bill14564
There have been some very long threads on whether or not it makes sense to pay off the bond.
I saw that in 12 years I would have paid the same amount whether I made yearly payments or simply paid the balance then. On the one hand I would lose any interest that I might make off the money if I kept it in my account but on the other, if I made yearly payments for those 12 years I would still have a $10,000 balance remaining.
I bet that I would be in the house 12 years and paid the balance. If the time period was 20 years then I might have made a different decision.
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Thanks Victor,
I searched the threads briefly a couple of days ago and had a hard time finding the dedicated bond threads. Appreciate your thought process and am doing some similar calculations. I need about 6.4% pre tax on the money to break even paying the interest and fees. Doable but not at current risk free rates.