Talk of The Villages Florida - View Single Post - "No Bond" is promoted in home sales. But what's the real savings?
Thread: "No Bond" is promoted in home sales. But what's the real savings?
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Old 11-27-2023, 06:35 AM
john352 john352 is offline
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Quote:
Originally Posted by margaretmattson View Post
From what I heard, the bonds on the newer homes are reaching $50,000. But, that doesn't mean EVERY new home has that amount of bond. The bond payments are NOT included in the purchase price. The payments are amortized over 30 yrs and you pay interest.

Instead of just using a villages rep, get in contact with an MLS realtor. They work for agencies outside of the Villages. They sell preowned homes not listed with the Villages. You should work with BOTH agents. If you can't get answers from the Villages rep, the MLS rep will fill you in.

Bond payments are added to your tax bill annually. Ask what your taxes, including the bond payment, will be before purchasing. Each county has different tax rates. With a bond, your tax bill can be 7- 10 thousand dollars per year.
Good Luck!
I purchased a new home in The Villages in 2004. My plan for financing included a mortgage on the new home. I asked The Villages salesperson what the interest rate on the bond. The bond interest rate was significantly higher than the interest rate on the new mortgage. Therefore, I increased the principal on the home mortgage by the bond principal amount and paid off the bond at closing.