Pay off the bond
Don't pay off the bond and you pay 7.2% for 30 years
Get a 30 year mortgage to pay off the bond for less than 5% and it's tax deductible. I think you save money taking this choice for how long you own your home. When it comes time to sell I would market my home to make sure prospective buyers are aware of the value you have with a bond free home.
Either choice it's still a loan that has to be paid. So for those folks who have a bond to pay and who think they are debt free you're really not....
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