Do I get my bond value back if I pay if off early?

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  #1  
Old 01-11-2021, 10:36 PM
CoachKandSportsguy CoachKandSportsguy is offline
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Default Do I get my bond value back if I pay if off early?

Based on the current zillow estimate, after two years of owning the property, the Zillow estimated market value currently equals the original purchase price plus the initial bond, within a 1K . . .

Now, if one is flipping a house, definately do not pay off the bond. However, if you are keeping the house for greater than 3-5 years, currently paying off the bond will save interest expense, and you will get your bond payment back. . the goal being to reduce money rental fees.

And don't @ me about Zillow estimates, I understand how they are done, can perform the same regression analysis with the same data set they have, and the variances. And i know you can believe or disbelieve anything you want, but from a data point of view independent of my beliefs, you can get your bond back as long as you wait for your price.

There are behavioral analysis studies showing that realtors price based on getting their commission, not getting your price, even if you think that they work for you. . .

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  #2  
Old 01-11-2021, 11:26 PM
Garywt Garywt is offline
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Yes to can pay off your bond and hope to recoup the funds when you sell or you can pay the bond yearly and not even think about it. My bond is part of my mortgage payment and I think the interest rate is lower than the rate I have on the mortgage. I never have to think about it which works for me.
  #3  
Old 01-11-2021, 11:41 PM
retiredguy123 retiredguy123 is offline
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In my opinion, if you pay off the bond, you will not get the bond money back when you sell. Typically, when a real estate agent lists a house, they will not reflect the bond in the listing price. It's better to keep the bond if you plan to sell within 8 years or so
  #4  
Old 01-12-2021, 04:53 AM
Two Bills Two Bills is offline
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My philosophy on any debt was simple.
If my capital was earning more than the interest on the debt, keep the capital.
  #5  
Old 01-12-2021, 06:10 AM
cgilcreast cgilcreast is offline
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Better check the interest rate. Mine was 7% I think. I was paying almost $1500 each year. Mortgage rates are so low now I would pay it off for sure!
  #6  
Old 01-12-2021, 06:49 AM
John41 John41 is offline
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Some bonds have been refinanced at lower rates so paying off might be less attractive.
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  #7  
Old 01-12-2021, 07:46 AM
VApeople VApeople is offline
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Quote:
Originally Posted by cgilcreast View Post
Better check the interest rate. Mine was 7% I think.
Yeah, ours was 6% so we paid it off after a three years.
  #8  
Old 01-12-2021, 08:07 AM
Stu from NYC Stu from NYC is offline
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Several real estate agents we consulted on this said we would not get our value back so up to now we have left it alone.
  #9  
Old 01-12-2021, 08:12 AM
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dewilson58 dewilson58 is offline
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Not sure if it's funny or sad when buyers do not consider bond balance when purchasing a house.
"my house is for sale, oh by-the-way there is a $40,000 lien against it but you can ignore it"


ok, it's funny to me
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Last edited by dewilson58; 01-12-2021 at 08:27 AM.
  #10  
Old 01-12-2021, 09:15 AM
charlieo1126@gmail.com charlieo1126@gmail.com is offline
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I’ve sold 4 homes in villages never paid the bond off , some buyers will offer a bid after subtracting the bond , that doesn’t work for me , I’ve never been in one of my homes for more then 4 years they are well set up when I sell and all went for over assessed value and furniture package outside the deal , I would never pay bond off , you don’t know if you’ll have to sell for some reason, I’ve also sold 8 other homes and condos all over fl never put down more then20% on any of them
  #11  
Old 01-12-2021, 10:10 AM
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Maybe maybe not? But for me I know I’M NOT paying interest on bond. If I was like some and trade houses like cars then I wouldn’t pay off bond.
  #12  
Old 01-12-2021, 10:56 AM
thelegges thelegges is offline
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Quote:
Originally Posted by dewilson58 View Post
Not sure if it's funny or sad when buyers do not consider bond balance when purchasing a house.
"my house is for sale, oh by-the-way there is a $40,000 lien against it but you can ignore it"


ok, it's funny to me
Our finance guy asks do you know the bond pay off. It’s the 2nd question after how much is the asking price
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Old 01-12-2021, 11:29 AM
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Quote:
Originally Posted by thelegges View Post
Our finance guy asks do you know the bond pay off. It’s the 2nd question after how much is the asking price
Logic.
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  #14  
Old 01-12-2021, 11:34 AM
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I look at it this way, do you think you're going to live 30 years after buying your retirement home in TV. My bond is $1,100 a year or $14,000 when I started in a CYV. So if I die within 13 years I'll come ahead, if I live longer I'll pay more than was needed. I'm just pay the $1,100 and not really think about it.

I have a reverse mortgage, so I'm not worried about heirs inheritance. My wife is 9 years older than me, so we'll probably live about the same life span. Now at age 70, having smoked 3 packs a day for 35 years, I never thought I would live this long.
  #15  
Old 01-12-2021, 11:44 AM
Bilyclub Bilyclub is offline
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I'm not going anywhere so 5.507% a year in interest had to go. Paid it off last year but still haven't got the paperwork. Can't see the prices here going anywhere but up.
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