Quote:
Originally Posted by kaseydog
(Post 1734757)
even if you pay off bond you still incur a yearly maintenance fee. were these bonds financed through citizens bank? as i understand it
citizens is owned by morse family.
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These bonds have absolutely nothing to do with Citizen First Bank, these are commercial bonds sold to investors. They are also not a mortgage and can't be compared to one in terms of "refinancing". If I recall from the bond sales for the Amenity purchase in 2016, Chase bank was the financial institution to issue the bonds.
In these bonds, since they are investment vehicles, there are many limitations on reissuance of the bonds built into the bonds to protect both the buyers and the sellers. Remember these were 30 year fixed rate bonds the buyers purchased to make a given return on their investment.
In the past when the windows for reissuing (refinancing) the bonds opened, AND if the market was favorable, these bonds were reissued and the homeowners paying them saw the savings in their annual tax bill. Bonds for CDD3 though CDD8 were reissued in 2012, 2013, 2016 and 2016 to recognize such savings to the residents. A quick check of these bond rates indicates:
2010 bonds=4.817%
2012 bonds=2.784%
2013 bonds=4.25% to 4.94%
2015 bonds=4.25%
2016 bonds=3.35%.
None are at the OP's stated 6%, but then I didn't check every bond's rate only a sampling from each CDD.
Yes, on a 30 year at almost any interest rate above 2.4% will result in paying more interest than principal. If there is a service fee paid to the bond manager, as there always is, then the apparent amount paid on the bond at any given rate is still higher.
As many have already said, if you are unhappy with it you can either refinance it or pay the bond off.
One last thought, if it were not for the bond system allowed under Florida Law, the Villages would not be the community it is today. These bonds made and make it possible for the developer to invest their money in Rec Centers, golf courses, etc. instead of sewer pipes, electrical systems, roads, etc. This is to our benefit as well as theirs. You would pay for the infrastructure one way or the other, either it would be rolled into the cost of the house or as a separate line item as a bond.