Originally Posted by Bill14564 (Post 2441726)

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.