My thought on paying the bond off is to only do it if you plan on being in the home for greater than 10 years. If you can't say that is where you will be in 10 years then I wouldn't use savings to pay it off. I just bought a brand new villa and I have a $10,000 bond which is misleading if you figure the interest they charge. When I was looking at resale homes I will admit I looked to see if the bond was paid or that it had been paid down substancially. I think when you look at a new home your mind set is that it goes with buying a new home. I just wish the interest was deductible on my 1040.
