Talk of The Villages Florida - View Single Post - District Bond Amortization schedule is very weird, doesn't match normal calcs
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Old 09-23-2023, 09:13 AM
petsetc petsetc is offline
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Having read and occasionally comment on bond threads through the years, the way I look at it is, the bond funded the initial infrastructure, most developers just add this cost to the house, but The Villages makes it a assumable "second mortgage" that can be retired any year. It allows The Villages to charge more for a house without appearing too out of line since the infrastructure cost is "hidden" in the bond, not the house price.

As for the cost and the county admin fee, if you pay your taxes in November, you get a 4% discount on the whole amount. But wait, the bond holder isn't giving you a discount, therefore the 4% off your bond payment must be made up. I suspect that comes from the (also discounted) admin fee.

Finally, based on historic investment returns, I see no reason to pay off the bond (or to not have a mortgage) but many people would rather be totally "debt-free" - I truly personal choice.

FWIW

Last edited by petsetc; 09-23-2023 at 09:14 AM. Reason: typo.grammar