You may not get all of your bond money back if you sell but a paid bond is a plus to buyers.

Agreed that you get some of your money back but to me not worth paying it off early unless we fully expected to live say 10 years in our house. At this point hard to say for sure.

Have been bond-free for ten years now, it's a good feeling.

I’ve been debt free for 15 years. Cash is king. Interest is lame:faint:

Jump on The Villages Gov. site and see how much our bonds really cost us over time. Not to mention the interest charged they also tack on an admin fee every year. I looked at some bonds in district 13 that were $40k but by the time you have paid them off the true cost on your bond in that district came to $157K. If your planning to stay in your home then pay it off and even if you don't stay you will sell the home quicker when it has "NO BOND"

As more homes age, more bonds will be paid off and it will actually be a detriment to sell a home that still has a bond payment. Agents will then be telling clients why it’s better to purchase the paid off bond homes.

To me, a mortgage debt and a bond debt are two different things. I would never carry a mortgage debt because it has to be paid off at some point and it has no benefit to me or to whoever buys my house, because they can get their own mortgage. But, a bond debt can be transferred to the buyer, and it can be a benefit to a buyer because they can either assume the debt or pay it off at their option. If I pay it off, the buyer cannot reinstate it. So, a house with an unpaid bond offers the buyer an option that is not available on a house without a bond. Options are good. This can often result in a financial benefit to the seller in terms of the overall investment.

Bond Payoff
 

Not all bonds are 6%. District 8 refinanced their bond during the summer. I believe it is somewhere around 4%. Even with the tax increase, our total tax bill was $530 less this year than last year.

However, a paid off bond was a powerful inducement to my buying the house I bought. So were a new roof and HVAC system. That’s a bit like getting a $50,000 (or whatever) discount.

But if you pay it off , you save 6% interest and your home will be more competitive when you sell it! As a recent buyer, I only looked at homes with the bond Paid Off!

Is your Real estate agent a financial advisor?

Refinance the Bond
 

You could just get a second Mortgage at a lower rate and pay it off.

That situation already exists. The houses in the northern areas are mostly bond free or small balances and I see no impact on new home sales in the south. I will take a new home over a 20 year old house any day.

That’s a good point and I have thought about it. I just hate paying over $1000+ interest on a $1500 yearly bond payoff.