This is always a very entertaining question on TofTV.
The bonds have 30 year amortization.
The interest rate appears "low", but with the annual fee, the effective rate is much higher.
I agree with other posts...........it's up to your personal financial position.
Are you going to stay in the home, or upgrade or die within 30 years??
If you invest the funds, can you earn more than the effective rate??
Some people hate debt and want to get rid of it.
The debate comes on the impact of the homes value. Would you pay more for a house without a $20k or $40k bond than a home with the bond still alive and kicking??? Some say no, some say yes.
If you go the full 30 years............you will be shocked as to the total amount you paid for the $20k or $40k bond. The amortization schedules are out there, with the administrative fee included.
Enjoy all the responses.
