Marathon Man |
11-23-2020 10:23 PM |
Quote:
Originally Posted by CoachKandSportsguy
(Post 1864826)
Your answer isn't relative to the point made which was bond payoff early and recouping the cost when sold. The statement made was that one does not recoup the bond cost if paid off early when selling a house unless paid off on the amortization schedule.
Your point is a profit/income/wealth maximization / optimization answer with just a generalized assumption of a low interest rate.
sportsguy
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And that statement was generally correct. That is because you can not re-coop the bond by adding it to your asking price. Buyers will not look your way. As far as re-cooping the bond with appreciated value - OK, but that growth takes place whether you pay off the bond or not. Paying the schedule means I keep more profit after selling.
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