[Bill-n-Brillo]

Originally Posted by cathyw

So if you live in CCD 9 Unit 226 ( from previous link that was posted) you have a bond of $45,000. The first 10 years, you will pay over $2,000 per year in interest alone and less than $1,000 per year in principle. Total per year of over $3,000. So, you will pay over $97,000 over 30 years. $45,000 now ........or $97,000 spread over 30 years. This is the extreme, but all of the charts are about the same. You are paying about 2.5 times the bond amount if you don't pay it off. If you can afford to pay it off, it definitely makes sense to do so.

Very much like the impact and the math of a mortgage.

Bill