Quote:
Originally Posted by Paul B
What does "conventional wisdom" say on paying off the bond for our home. We have owned it two years and will be selling property up north. My "understanding" is that the interest rate is around 7 percent. Please let me know what you think. I have heard bad idea if you are going to sell (we do not foresee that) and good idea if you don't plan to. Thanks
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If your bond interest rate is 7per cent, if you have cash or near cash assets invested at less than your bond interest rate, if you have no critical needs requiring liquid assets, then IMO it would be a good financial decision to repay the bond. By paying of the 7 percent bond you have in essence made an absolute guaranteed investment at the stated rate. Do you know of any other absolutely guaranteed investment at this rate?
If there is such and investment, please post it here so that we all may benefit