When to pay off home bond
 

My home was built in 2004. When is it smart to pay off the bond? What time of year is the best to pay?

I'm thinking , are you going to stay in this house until you die ? do you want to pay 6% or can you make more than 6% on your money? do you want a payment??

When you know this is the house you are not going to sell

The infrastructure of the District in which you live was built with tax-exempt bonds. The bonds are repaid with monies collected in the annual tax bill sent out by the Sumter or Marion County Tax Collector's office and appear in the Non-Ad Valorem section of the tax bill as "Bond Debt Assessment".

You may pay off your bond assessment in full at any time. You are not required to pay off this assessment in advance.
�If you choose not to pay off the bond debt before the �July cut off date�, the annual assessment will continue to appear on the tax bill until the debt is paid off.
�If you choose to pay off your remaining bond assessment before the July cut off date, the yearly installments will be eliminated from your annual tax bill.
�If you pay off your bond between the July cut off date and September 16th you will owe no additional interest; however, you will still have one more annual bond assessment on your tax bill.
�If you pay off your bond between September 17th and March 16th you will owe six months additional interest.
�If you pay off your bond between March 17th and the following July cut off date, the full annual assessment of interest is owed.

Contact the Bond Unit at (352) 751-3900 for your Bond Payoff amount.

The July cut off date is July 22, 2016 to eliminate the bond assessment on your 2016 Tax Bill.

I hate debt.

I hate monthly payments.

The effective interest rate on these bonds suck.

If you like debt, if you like monthly payments........get a home equity loan or a mortgage loan and pay off the bond, the effective interest rate will be less.

Can you pay percentages of the bond off, 25, 50 or more?

http://www.districtgov.org/departmen...bond_info.aspx

Plus....if you go with this option (Home Equity Loan, etc.) even though you will continue to have payments, at least the interest will be deductible on your federal taxes, unlike the bond interest.

Life expectancy also plays into in.

No.

I also hate debt.
I did not like seeing the bond amount on the tax bill.
And the interest rate was too high.

We paid it off 1 year after moving in (2 yrs. after buying).
Our plan is to stay in our house.

It all depends on what works for you.

It all depends.

Is the interest rate you're paying on the bond, higher than the gains you can reasonably expect to make investing it?

If so, pay the bond off.

If that same money returns a higher % rate investing however, take the money you would use to pay off the bond and go invest it.

My advice ...
If you're going to keep the house for a long time, pay off the bond.
If there is a possibility you'll be moving anytime in the next few years, don't pay off the bond.
It will make your home more attractive to advertise it as "bond free".
But strangely, it doesn't mean that prospective purchasers will be willing to pay an increased amount for your home.

I sent them a check. Thank you for all the ideas. Free and clear!

Congrats!