[graciegirl]

Originally Posted by village dreamer

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??

That was our guiding philosophy. We didn't pay the bond on the first house here and we haven't paid the bond on this house, although both homes were paid for. We never know if another home here may catch our fancy. It is cheaper and easier to move here in TV and houses sell quick if they are nicely decorated and priced fairly. Not adding the bond in, catches the eye of potential buyers as a lower price. Just our view.

[biker1]

Ideally, the real estate sales people will be able to articulate the financial benefits of a paid off bond. In my case, it is about $1600/year (non tax deductible) with an effective interest rate of about 5.5%. I paid it off. I look upon it as part of my diversified portfolio.

Originally Posted by Challenger

Show me the data that supports this premise. The is never any guarantee that the next sale will be comparable to anything.

[Villageswimmer]

We must have one of the highest interest rates--6.125 % not counting the administrative fee, and you're correct not dedictible.

[VApeople]

Originally Posted by biker1

In my case, it is about $1600/year (non tax deductible) with an effective interest rate of about 5.5%. I paid it off. I look upon it as part of my diversified portfolio.

How is a debt part of any portfolio?

If a debt is part of a portfolio, then I guess we can all go borrow a bunch of money and claim we are rich.

[Chatbrat]

If the rule of 72 holds true, the bond holder will have doubled his bond back in 12 years

[justjim]

Most agree, if your house in TV is "final", in good health, and expect to live average life expectancy, pay off of the bond certainly makes sense. On the other hand, to each his own.

It makes a lot of "economic sense" not to own two houses. One here and another up north. But we choose to do so. To each his own.

[biker1]

Huh? Where did that come from? I never said that, or implied it. Go back and reread. I paid off the bond.

Originally Posted by VApeople

How is a debt part of any portfolio?

If a debt is part of a portfolio, then I guess we can all go borrow a bunch of money and claim we are rich.

[VApeople]

Originally Posted by biker1

Huh? Where did that come from? I never said that, or implied it. Go back and reread. I paid off the bond.

OK, I misunderstood your post. I didn't realize you had paid off your bond. I didn't know what 'it' referred to when you said this:

Originally Posted by biker1

I paid it off.

I guess you are considering a paid-off bond to be part of your portfolio because you reasonably assume that a paid-off bond will help you sell you house for more money. That makes sense to me, but others seem to disagree.

We are closing on a new house in two months and we are trying to decide if we should pay off the bond or not.

[Duke-SRT]

You say if I pay between the July cut-off date and Sept.16th ther will be one more assesment on my tax bill. Will I have to pay this assesment even though the bond is paid off?

[Bogie Shooter]

Originally Posted by Duke-SRT

You say if I pay between the July cut-off date and Sept.16th ther will be one more assesment on my tax bill. Will I have to pay this assesment even though the bond is paid off?

See post #4.

[Jimmydoodlebug]

Originally Posted by justjim

What you say is absolutely correct, however, you are also "leasing" your property from the Government. You pay your lease in the form of taxes each year. So in reality you never really own your home free and clear so to speak.

Completely correct. You never really own your house, you just rent it from the government. Stop paying your taxes and out you go.