Bond
 

How do I find out the balance of my Bond?

Go to districtgov.org, click on residential bond assessment information, click on amortization schedules, click on your county, district, etc. It will show the entire amortization schedule for your bond, assuming that you have not paid it off.

Thank You!

Bond Amortization Schedules :ho:

Be sure to check the interest rate. It varies depending on when the home was built. Mine was a whopping 6.125%.

PS - as a buyer, I ALWAYS add the bond to the asking price of the house when comparing homes for sale. I believe (its just how I do it) that the bond amount should ALWAYS BE CLEARLY STATED in homes for sale. It is in fact, part of the capital amount you are or may be financing (directly or indirectly).

It is my belief that the bond amount is not included in bank financing calculations and not included in an appraisal value. I base this on my experience financing my Village home purchase in 2014.

2-plane,

You are absolutely correct. However, you are paying for both, at an interest rate (some here have said they are paying in excess of 6% on their bond!). You ARE paying different parties, but you are still paying for both.

I am saying that to compare the overall costs, I add the bond to the asking price when looking at or comparing homes that are on the market.

Pay it off!
 

Just take a look at how much interest is being charged on the bond and how front loaded it is. I bought 9 years ago with the intent of not moving from my house and paid off the bond immediately. After 8.5 years I am saving tons of money now. Of course if you have plans on moving to another house within 8 years or so from purchase most choose not to pay it off. The realtors are apparently trained to tell everyone to NOT pay it off but I consider that pretty bad advise. Even if selling within 8 years, houses with bond PAID are much more attractive than still having a bond that is almost the same as it started out. Either way, you have to factor in that the bond is part of what you are paying for the house.

And as I understand it the interest on the bond is not tax deductible as mortgage interest usually is for most folks most of the time.

That is correct, it is not deductable.

Pay it with a home equity line of credit maintaining a zero balance like a credit card.

Of course the bond looks "front loaded", that is how all loans work, you are paying a given percentage of the outstand balance in interest and a portion goes to the principal.

Is the bond a negative, not really since most homes here in The Villages have them. Not having a bond payment is a definite positive and if all other things on two identical homes are the same, take the one without the bond of course.

I agree with your position of paying off the bond if you are going to stay in the home long term as it will save a considerable amount in interest. Is the number 8 years, longer, or less, that depends on the bond interest rate, finances, and level of pain you are willing to endure paying interest. If you move every couple of years, as some do, paying off the bond does not offer a sufficient payback to justify the expense.

I have to always laugh when I see homes advertised for sale proclaiming the bond is paid off. What fool would pay off their bond and then not increase the selling price accordingly? As the saying goes, nothing is free.

Selling price is what the market will pay. Two homes same value, one with no bond outstanding , and one with an outstanding bond of $10,000 affects the negotiation. Would I pay the owner of the no outstanding bond $10,000 more. Probably not, but I would pay something more. If the houses were priced $10,000 different (Bond Paid house higher) I would buy the house with the unpaid bond (less out of pocket) unless I got a break from the bond paid house owner.

That should be confusing enough.