[GeorgeT]

Just wondering how many are planning on paying their bond off this month.
If I pay it off now I'll be even in 11 years. If I continue making annual payments I'll be paying for another 23 years and an additional 11K. The interest rate is 6%. I'm opting to pay it off and save the $500 interest payment every year.

[aljetmet]

Originally Posted by GeorgeT

Just wondering how many are planning on paying their bond off this month.
If I pay it off now I'll be even in 11 years. If I continue making annual payments I'll be paying for another 23 years and an additional 11K. The interest rate is 6%. I'm opting to pay it off and save the $500 interest payment every year.

I would pay it off. You're not making 6% in the bank...

[Bill-n-Brillo]

George, t answer your question - we're not paying ours off. Our interest rate is a bit lower (5.375, I believe) but still - given our mindset that we might not be keeping our Patio Villa for the long term, we'll just continue to pay the annual bond payment til we decide on a different "life plan".

Bill

[Ohiogirl]

We paid ours off last summer, after 4 years of owning, and making the decision we did not expect to sell, even if something happened to one of us (you just never know). We had spent enough time there, even though we were renting it out, to know that our CYV in our present location was right for us.

There are numerous threads somewhere about what is best - I think the consensus that it depends on the individual situation. Your home's value is somewhat increased by having a paid-off bond, but probably not as much as the bond payoff. I would say to make sure you are where you want to be, at least for the next several years.

[diskman]

Originally Posted by Bill-n-Brillo

George, t answer your question - we're not paying ours off. Our interest rate is a bit lower (5.375, I believe) but still - given our mindset that we might not be keeping our Patio Villa for the long term, we'll just continue to pay the annual bond payment til we decide on a different "life plan".

Bill

Thinking of a larger house or not liking the villages?

[Bill-n-Brillo]

Originally Posted by diskman

Thinking of a larger house or not liking the villages?

Uh-oh.....my bad. I shoulda 'splained my earlier comment a bit better. Sorry.

"Larger house" would probably be the 'different life plan' direction should we ever decide to become frogs/spend a lot more time in TV. In the meantime, our Patio Villa suits us just fine while we're snowflakes.

We LOVE TV and can't wait to get back down there in a couple of months!!! Sandy's counting the weeks right now - she'll switch over to counting it down in days in about another month...............

Bill

[Carla B]

A Bond Story: Fees on Top of Interest

We went to the customer service center on Wedgewood to pay off the bond by the deadline. I took something to read as I imagined there'd be a line of people waiting to do the same, kinda like the wait to get new IDs. Wrong! We were the only customers in the whole center to do anything!

I had run an amortization schedule at the stated interest rate of 5.375%...it didn't match the yearly payment, so we asked why? In response, the lady brought out a HUGE 6" thick binder that contains all the amortization schedules for all the units in all the districts. She found our unit's schedule and pointed out that there is a administrative fee collected by the VCDD. In our case it was $84 per year, so our interest rate was really 5.81%, instead of 5.375%.

I wasn't thrilled about paying off the bond, but the other party to the deed insisted because he hates to owe money. .

[kofficer]

and while we are on this subject, as I am going to be looking at resale homes, if a bond is paid off, it is an incentive for me to look at that house, but, will the houses appraise for that additional amount if you are looking at getting a mortgage?? Just something I have been wanting an answer to.

Lee and Richard in Tampa

[GeorgeT]

Originally Posted by kofficer

and while we are on this subject, as I am going to be looking at resale homes, if a bond is paid off, it is an incentive for me to look at that house, but, will the houses appraise for that additional amount if you are looking at getting a mortgage?? Just something I have been wanting an answer to.

Lee and Richard in Tampa

The bond has nothing to do with the appraisal. The appraisal is based on the value property.

[kentucky blue]

Originally Posted by GeorgeT

The bond has nothing to do with the appraisal. The appraisal is based on the value property.

That's why i've decided to take the money that i was going to use to payoff my bond, and increase my holdings in IBM stock. If i decide that this is the home i want for the long term,next July i'll look at the bond issue again. I can then decide to use my huge profits in IBM(got to think positive) and payoff the bond or do a home equity loan so i can deduct the interest payments.If you are going to sell your home in the near future you will never recapture the bond payoff, since homes ARE valued on the appraisal alone, and NOT the appraisal plus the paid off bond.

[2newyorkers]

Once we decided we would not move from out current house in TV we decided to pay off our bond. At that time we were both still working. Now we have more money for play in retirement.

[rjm1cc]

Does anyone know who owns (issues) the bonds? Bank, the county etc.?

[aljetmet]

Originally Posted by kentucky blue

That's why i've decided to take the money that i was going to use to payoff my bond, and increase my holdings in IBM stock. If i decide that this is the home i want for the long term,next July i'll look at the bond issue again. I can then decide to use my huge profits in IBM(got to think positive) and payoff the bond or do a home equity loan so i can deduct the interest payments.If you are going to sell your home in the near future you will never recapture the bond payoff, since homes ARE valued on the appraisal alone, and NOT the appraisal plus the paid off bond.

I'm an adocate of payin off the bond. I ve indicated that numerous times.

I personally would not use investment money to pay off. But for those buying now and getting a mortgage, rolling the bond into the mortgage is IMHO a good idea.

[Another 65er]

Originally Posted by aljetmet

I'm an adocate of payin off the bond. I ve indicated that numerous times.

I personally would not use investment money to pay off. But for those buying now and getting a mortgage, rolling the bond into the mortgage is IMHO a good idea.

I don't think that's possible. Let's take an example: a new designer home selling for $230,000. A 20% down payment (or $46,000) is necessary to qualify for a mortgage. Now the buyer now has a $184,000 mortgage. Let's say the bond is $20,000. The bond can't be added in to make a $204,000 mortgage because then the mortgage would be almost 89% of the home's value. The lender isn't going to have a greater loan to value than 80 to 100.

Perhaps I'm missing something.

[Bill-n-Brillo]

Maybe the buyer's got more than the 20% to put down......?????

Bill