Quote:
Originally Posted by janmcn
Who gets away with charging 6.93% yearly interest in this day and age? After paying $1114.87 per year for 30 years, you would wind up paying $33,446.10 plus fees, for the $13,338.17 bond And from what I understand that interest is not tax deductible.
IMO, it would be better to add the cost of the infrastructure into the price of the new homes like a lot of developers do. Obviously, having the bonds separate keeps house prices lower.
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Bond interest rates are set at the time the bonds are sold and are not controlled by the Developer. The buyers are the ultimate determinant of the interest rate. It is a financing method. My suspicion is that it was cheaper to finance by this method than through a development loan by some private finance source( bank, insurance co. etc). The total cost of a home in the Villages is and always has been the sales price plus the bond. The bond is essentially a first lein on your home.