[ElDiabloJoe]

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.

This is an interesting thought process. I would appreciate it if you were able to 'splain it as if I were a 5 year old. Are you saying your annual payments would take 12 years to add up to the bond amount if you had paid it in cash at the start (i.e.- without paying interest in the annual payments) - a kind of break even point?