[ElDiabloJoe]

Originally Posted by Bill14564

Yes, sorry I didn't word it better.

As an example, let's say my yearly payment was $1,500 and right now my balance is $18,000.
- If I pay $18,000 today then I have no more yearly payments going forward.
- If I continue to pay $1,500/year then in 12 years I will have paid the same $18,000 but I can see from the amortization schedule that I would still have a balance of $10,000.

If I'm going to stay in this house for at least 12 years then I would save money by paying it off. If I leave earlier then I put money on the bond that I would otherwise pass to the next buyer. I'm betting I'll be here the full 12 years.

This doesn't factor in investment income. It might be argued that I would make more than $10,000 by leaving the money in the market. In my case, the money was in a bank account and the market tanked a few month after I paid the bond. Someone else may choose to do the math to show me that I still lost money but I feel comfortable with the choice I made.

Interesting. Thank you. One would have to be disciplined enough to actually take the money one would pay in bond and put it in an investment account and few are. If there's a few extra Gs in the account, Mrs. EDJ's Amazon account gets a lot more activity.