Talk of The Villages Florida - View Single Post - Bond Payoff
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Old 05-13-2011, 10:48 AM
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aljetmet aljetmet is offline
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Default bond payment

Quote:
Originally Posted by tjwarzel View Post
I received a letter the other day informing me that I could payoff my bond. I was wondering if anyone had any opinions pro or con on the subject.
You are probably paying 7% on the bond. If we could have that as a guarantee return on my investments, I'd retire today. If you have idle funds that do not provide that return, as a strictly financial decision. I think it's a good idea. Cash flow is key. Now to get financing now might be more costly then you save. Also a heloc now is obviously lower but there is no guarantee what it will be so you need a fixed rate.

Some people believe that a paid off bond does not help to sell the house off.

I disagree. Buying a house is fianancial and what it costs in total is the key.

A little marketing goes a long way.