Re: Closing Costs - New vs. Resale
RichC...
The bond is essentially an infrastructure/impact fee...the cost to build the roads, golf cart trails, common lights, common landscaping etc. As such, I think (and I do not definitely know) that a bank would not consider it as part of the cost of the house and thus part of a mortgage based on value of the house.
The bond is collected as part of your property tax bill every year. You are given an opportunity each year (approx in July) to pay it off.
Although it is not a tax, it is substantially interest payments in the early years for the original debt to build the infrastructure. An earlier poster said you can get an accurate figure on how much is interest (from the property appraiser/tax collector's office?) and thus is deductible on your income taxes.
I also assume the interest rate on the bond for new homes is adjusted as market rate conditions change. I believe my bond, enacted in mid 2006 is closer to 6%.
This, of course, all assumes you are looking at a new house. On a resale, the bond might already be paid, may be substantially lower, etc.
Good luck in your searching and keep the questions coming. If any others with more intimate knowledge of the bond process sees any inaccuracies or flaws in my statements, please pipe in to clarify.
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Maryland (DC Suburbs) - first 51 years
The Villages - next 51 years
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