Bond
 

I will be selling my home up north soon. Is it smart or not to pay off the bond on our Villages home? Half had said no and half have said yes. Thanks

From 10,000 feet (detailed people will start to reply):
Personal preference. The bond is financing for you. Check your rate of interest. 4%, 5%, 6%???? Can you leave your bond and invest the funds and make more money?? Some people take out Equity Lines with lower interest rates and finance it.

Keep in mind, if you just make the monthly payments, by the time you finish....you paid the bond twice.

Some people just pay it off, no worry about monthly payments and sleep better.

Good Luck

:posting:

Paul, with all due respect, and I mean this totaly sincerely, what do you expect to hear here? I bet 50% will say yes, pay it off...

Paul,

Like others said, there is no real answer, but my thought on this is the following. The interest rate on my bond is a little over 6%. There is no way that I can reliably get that kind of return in the current economy, so keeping the bond will cost me vs paying it off. On the other hand, if we paid it off and don't stay in the house long term we will lose even more money. I decided to give it one to two years before we pay it, just to make certain that we are happy in our home.

And the answer is........................................

Wow! We are in the same dilemma and go back and forth on it. I say pay it off and be done with it. My husband says if we move in a few years we'll never recoup it. Maybe like CraigC said we should give it a few years till we settle in and have a better idea of what we may ultimately do a far as moving goes. Crazy issue....

More opinions here;
https://www.talkofthevillages.com/fo...-payoff-38570/

I say...Pay it off. I would not want to be paying over 6% interest on the bond amount.

Is your rate really 6%? I'm in district 6 and my rate is 4.94%.

Amortization Schedules - Sumter

District 9--rate is 6.96%. Paid the bond off last week. They told me it would be 2021 before they could refi this bond at a lower rate.

KeepingItReal, this is not a whole lot different than the way a home loan is handled...You always pay more interest at first, and end up paying much more than the original loan amount if taken to term. Some folks either can't pay it off up front, or choose not to in order to save some cash reserves. Not everyone has an extra $20k...

Granted, many here have paid cash for their homes, but not everyone.

Ditto!

It's a personal decision, but you should consider how long you expect to stay in the home here. If you think you are here to stay, and you can afford to pay it off, that would be best. If you think you might move in a couple years, it is probably best to not pay it off since most believe that you will not recoup what you would have paid.

When are the bond bills sent out? Same time as the Tax Bills?

The bond bill is included in your tax bill. If you have been in your home less than a year, you will only pay taxes on land this year....along with your bond payment.