Village Bond
 

Hi,

New to The Villages. I want to learn a bit more about the bond. I noted that the interest rate is 5% or so and has a number of years remaining to be paid. Is it possible to pay some of this in advance to save some interest? If yes, who do I contact and how do I do it?

Bill Snider

Welcome Bill. Yes, you can pay the bond off early. I misspoke when I said partial payment is possible. However opinions differ on whether it's a wise thing to do.

If you use the Search Button Above, and type in bond, you'll find all kinds of threads telling you how to pay off the bond early, and also discussions on whether it's a smart thing to do.

There are no partial bond payments.

"Can I make a partial payment of total assessment due?

No, you cannot make a partial payment on the assessment due. Florida law requires payment in full or through the annual assessment on your tax bill."


Village Community Development Districts

pay off
 

The above info is correct. You may either payoff the entire balance or your 1/30th payment once per year when the payment is due once a year.

Since the interest on your bond is not tax deductible, quite a few Villagers have taken out a home equity loan for whatever their bond balance is, paid it off, and are able to take a tax deduction in the interest on the home equity loan.

No one is certain how long that will work as there are Congressional members who want to eliminate certain deductions like home equity interest and mortgage interest deductions.

Someone just mentioned on another thread that September 15 was the last day to pay mid-year. Since that just passed, you will have to wait until you get your next statement with the date to pay.

Sorry but you don't have to wait and if you do wait you will likely pay even more interest, (like nearly 7%), plus the $100 + administrative fee, and a $10 fee to release the lien. Right now since it after September 16th you will pay another 6 months interest for next year no matter what you do even if you pay it today but if you wait until after March 16th 2014 you will be charged another full year's interest.

(Previously until the rules were changed you would have had to pay another full year's interest even if you paid it off today.)

Call and get your payoff now and you can pay it off anytime if you desire. Payoff amount won't change until March 17th 2014 when another 6 months interest will be added to the payoff. You have already have been charged interest on the bond up until then.

Village Community Development Districts

From the above website:

If you pay off your bond between September 17th and March 16th you will owe six months additional interest.
If you pay off your bond between March 17th and the following July cut off date, the full annual assessment of interest is owed.
Contact the Bond Unit at (352) 751-3900 for your Bond Payoff amount.

The July cut off date is July 25, 2014 to eliminate the bond assessment on your 2014 Tax Bill.

Actually you can pretty much figure your payoff from this site if you know how many years have been paid.

Bond Amortization Schedules

http://www.districtgov.org/departmen...rtization.aspx

5% or so? Mine was 6.9% Better check that out

The answer to the OP's question of how to pay it off is excellent. Yes, I do think the interest rate is the 6.9% and a partial payoff is not possible.

Here is the amortization schedule and interest rate for all units and lot numbers.
Amortization Schedules - Sumter

Thanks for the correction Bogie. In December 2012, when we paid our Sumter taxes, we were told by the tax lady that partial payment of the bond was possible. But obviously we misunderstood. I should not have volunteered the information without being 100% certain of my source.