Quote:
Originally Posted by djohnson
i just bought a designer home and also surprised at the interest rate, very high - high 6% range. Debating should I take a low interest home equity loan and pay off over 10 years, or should I take money out of the bank and pay it off, or just leave it alone, it's that interest payment that kills me and not being able to deduct it off the taxes, as I understand you can't take a deduction from what I've read and talked to an attorney.
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If your bank account is not paying 6%( and I'm sure that it isn't) I would consider paying off the Bond. Payoff would be the functional equivalent of investing at 6% guaranteed return. That assumes that you would be left with sufficient cash reserves. If you do the payoff and need funds later, you can always do a home equity loan. There are not many oppurtunities for guaranteed investments at a 6% guaranteed return at this time.