Talk of The Villages Florida - View Single Post - Bond Payoff
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Old 07-21-2011, 12:51 PM
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aljetmet aljetmet is offline
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Default Bond payoff
Quote:
Originally Posted by kentucky blue View Post
That's why i've decided to take the money that i was going to use to payoff my bond, and increase my holdings in IBM stock. If i decide that this is the home i want for the long term,next July i'll look at the bond issue again. I can then decide to use my huge profits in IBM(got to think positive) and payoff the bond or do a home equity loan so i can deduct the interest payments.If you are going to sell your home in the near future you will never recapture the bond payoff, since homes ARE valued on the appraisal alone, and NOT the appraisal plus the paid off bond.
I'm an adocate of payin off the bond. I ve indicated that numerous times.

I personally would not use investment money to pay off. But for those buying now and getting a mortgage, rolling the bond into the mortgage is IMHO a good idea.