Ability to Pay Bond Full

[Army Guy]

I have seen somewhere that TV gives us the chance every year, I think it was in the spring, to pay our bonds off. When do they mail us that choice, or do we have to notify them?
Thanks, Army Guy

[784caroline]

Last years notice was dated May 4, 2009.....Years prior were dated
May 30, 2008 and June 1 2007. You have approx 8-10 weeks from the date of the letter (Mid to late July) to decide if you are going to pay off the bond in full.

There have been a number of threads started on the pros and cons of making such payment. From what I recall, if you plan to be in your house at least 10 years or more it may be beneficial to pay it off. If you have any doubts of staying in TV or you think you may sell and move to another home in TV, its probably not to your financial benefit to pay the bond off for you are unlikely to recoup the cost in the sale of the house especially in todays market. If you plan on staying put and have the extra 15K, 20K or even 40K whatever your bond may be, it would make sense given low interest rates and the wide flucatuations in the financial markets...and you like to sleep at night!

[downeaster]

I have seen somewhere that TV gives us the chance every year, I think it was in the spring, to pay our bonds off. When do they mail us that choice, or do we have to notify them?
Thanks, Army Guy

I believe there are provisions for paying it off during the year. Check with the District Customer Service Center at 753-4508.

BTW, that's a good number to post on your refrigerator. They are very helpful.

[Army Guy]

Great! Thanks to both of you. I will give them a call, and that gives me a date to shoot for to get it paid. Have a great Holiday Season.

Army Guy

[zcaveman]

I believe there are provisions for paying it off during the year. Check with the District Customer Service Center at 753-4508.

BTW, that's a good number to post on your refrigerator. They are very helpful.

You can pay the bond off whenever you want. BUT it does not make sense to do it before July of next year when they calculate the interest rate for the previous year. Why not draw interest until May-June of next year and then pay it off.

I am sure that is what the District Customer Service Center will tell you.

[ajbrown]

There have been a number of threads started on the pros and cons of making such payment. From what I recall, if you plan to be in your house at least 10 years or more it may be beneficial to pay it off. If you have any doubts of staying in TV or you think you may sell and move to another home in TV, its probably not to your financial benefit to pay the bond off for you are unlikely to recoup the cost in the sale of the house especially in todays market. If you plan on staying put and have the extra 15K, 20K or even 40K whatever your bond may be, it would make sense given low interest rates and the wide flucatuations in the financial markets...and you like to sleep at night!

Another point in addition to recouping the cost is that whatever cost you hopefully can recoup is now part of the tax base for the buyer. When folks buy homes they _may_ compare two similar homes, one for $220k with a $20k bond and one for $240 with no bond. If I am buying the former (with a bond) wins.