Quote:
Originally Posted by jollyroger
Hi,
As a new TV owner, I am confused on the plus and minus about paying the
"Bond" off on a new home. I plan to stay here until they carry me out in a box, and I see no sense in paying 5 to 10 times or more the original cost by amortizing the bond! I have also heard that used homes sell faster if the bond is paid? Lastly, I have been told that the interest on the bond is tax deductable (hint- hint- wink - wink). If that is not legal, I would be the one to be audited by the IRS. Please let me know what the real scoop is
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Bond interest is not tax deductible, the interest rate on the bond is close to 7% in most cases and there is an additional yearly administrative fee to pay as well.
If you pay the bond for 11-12 years at nearly 7% interest in most case plus a yearly administrative fee of over $100 you will have paid enough actual money to have paid it off up front. If you choose to carry it at that time you will still have another 18-19 yearly payments to make which you would have saved by paying it off in the beginning.
Each person has to decide what works best for them and make their own decision. Bond paid is definitely a selling point but then it did have to be paid by you to be able to say that.
http://www.districtgov.org/departmen...bond_info.aspx