Quote:
Originally Posted by 784caroline
Most people after spending some time looking for Real Estate here in The Villages quickly realize what a Bond means and how it is to be paid. I think few people, if anyone, are being misled. However it does not change the fact that the initial cash outlay to buy a $200,000 house with a $15K bond is cheaper than a house costing $215K with no bond. Also when you are looking at comparable houses...the $215K house will appear more expensive because you will need more money to get in it and the $200 K house will most likely sell faster...UNLESS the $215K house seller agrees to a lower price thus negating the benefit of paying off his bond early.
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Operative word = appears. In fact total initial obligation is the same. For those able to benefit from interest deducition paying off bond and including that amount in the mortage provides greater interest deduction and probably lesser overall financing costs depending on the rate of bond interest.