[dmorhome]

Have you really sat down and figured out what that bond is actually costing you, If you don't pay it right away.It won't put a smile on your face that's for sure. at 6.96 % interest
That $21,000 will cost you over $50,000.

[billethkid]

Originally Posted by dmorhome

Have you really sat down and figured out what that bond is actually costing you, If you don't pay it right away.It won't put a smile on your face that's for sure. at 6.96 % interest
That $21,000 will cost you over $50,000.

The answer may be they do not expect to outlive the life of the bond.

[karostay]

Anything with interest I payoff ASAP better off in my pocket not theirs

[Kenswing]

Since I don't live in The Villages yet and am still learning all the ins and outs about how everything works, couldn't you just refinance the loan at a better rate or are you locked into that rate? I know if I had a rate like that with today's available cheap money I would be finding a way to pay it off.

[DARFAP]

Check your property taxes. The bond is paid as an ad valorum with your taxes. It is not part of your financed mortgage payment. There is no interest on it.

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[twoplanekid]

Originally Posted by DARFAP

Check your property taxes. The bond is paid as an ad valorum with your taxes. It is not part of your financed mortgage payment. There is no interest on it.

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There is interest on the bond! Let's take a look - > https://www.districtgov.org/departme...Unit%20192.pdf

[Carla B]

Originally Posted by twoplanekid

There is interest on the bond! Let's take a look - > https://www.districtgov.org/departme...Unit%20192.pdf

Not only interest, but an administrative fee.

[blueash]

The bond is not going to be refinanced as it was taken out by the Morse family's corporation(s)/CDD's to finance the building of the infrastructure. There is no incentive for refinancing as the bond holders are making money and there is no municipality that would benefit from the refinance as it is the homeowners paying it, not the CDD.

[bandsdavis]

I make more on my investments than I pay in interest and the admin fee. Therefore I let the investments continue to earn more and I pay the bond costs. FYI, I bought a pre-owned house, so about 5 years of the bond had already been paid.

[Barefoot]

Originally Posted by twoplanekid

There is interest on the bond! Let's take a look - > https://www.districtgov.org/departme...Unit%20192.pdf

Yikes, I'm glad we paid off our bond.
It was a small amount because we bought a preowned home.

[villagetinker]

Paid ours off after about 4 years, since we could NOT deduct the interest.

[John_W]

On our CYV the bond is $14,000 and we pay $1100 a year and so far in 8 years the bond has gone down about $200 a year. So we don't go in the hole until after 13 years. I would be glad to have the problem of living 30 years to the end of my bond, that would make me 91. I guess it's good to have wishful thinking.

[EdFNJ]

Originally Posted by DARFAP

Check your property taxes. The bond is paid as an ad valorum with your taxes. It is not part of your financed mortgage payment. There is no interest on it.

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Actually there is. Ours is 4.94% w/20yrs left.

[petsetc]

Think of the bond as a second mortgage that is automatically assumed by a new buyer.

If you pay it off in the first few years of ownership and you decide to sell/move, you would need to add what would be the remaining balance to your selling price to be even. That would mean you would have to sell for x dollars more than someone selling that did not pay off the bond, a tougher sell. Since most Villagers move a few times, this is a real consideration.

Also, I think if you are earning near or more than the bond interest on your investments, it makes little since to give up that liquidity to feel debt free.

Also, since it is tax time, remember that if you pay early you get to take the early pay discount on the bond too.

[petsetc]

!!!