Talk of The Villages Florida - View Single Post - Would the 38K bond on new homes be a deal breaker?
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Old 05-02-2020, 07:51 AM
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It appears there is some misinformation here. The bond is normally paid MONTHLY at the agreed upon interest rate over a period of typically 25 years. As noted on a previous post the interest rate was what we considered high, you can NOT deduct this off income tax (even if you itemize), so we paid it off after 4 years. My point, this is NOT an up front cost, it is an ongoing monthly cost unless you decide to pay it off. You can get a full accounting of the cost from your agent or online.
Regarding another question above, if you bulldoze the house and rebuild, NO there is no additional bond applied, the bond is to cover the infrastructure of the development.
We did not consider the bond a deal breaker, as it was just an additional monthly expense.
There have been several threads on this subject, and several people suggested getting a home equity loan to cover the bond, this will generally be at a lower interest rate, but you need to be careful if interest rates go up.
Hope this helps.
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