Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Bond payoff (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/bond-payoff-313438/)

TNLAKEPANDA 11-26-2020 07:23 AM
Quote:
Originally Posted by eeroger (Post 1865989)
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.
We are at 5.25% I believe.

Thanks

TNLAKEPANDA 11-26-2020 07:28 AM
Quote:
Originally Posted by retiredguy123 (Post 1865978)
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.
That’s a different point of view. Don’t know if I agree or not but thanks for sharing.

Jsan143 11-26-2020 07:29 AM
We owed about $2000 when we purchased the house 2 years ago, my wife inquired on payment. We were surprised when we were told that we owed $2232. And it wouldn’t be paid off until 2032. The payment of $283.59 a YEAR was broken down to $159.73 in principal and the remaining balance of $123.86 was interest and ADMINISTRATIVE FEES! If we continued paying it on their schedule we would have paid an additional $1700. What a scam, they never talk about the ADMINISTRATIVE FEES. Pay it off if you can.

Catalina36 11-26-2020 07:29 AM
I just recently purchased a home in TV. For me the Bond was paid off. Just curious, how much is a typical Bond amount when a new home is purchased. I know the Bond amount may vary depending on what year your home was built.
Thanks

Catalina36 11-26-2020 07:32 AM
Having the Bond Paid Off?
 
I would think it would be a good selling point to have your Bond paid off.

Bill1701 11-26-2020 07:36 AM
One strategy I have heard of is to put down enough on the house and basically roll the bond into the mortgage. That way you get a lower interest rate, but you do need to put more money down.

fastboat 11-26-2020 07:38 AM
Quote:
Originally Posted by TNLAKEPANDA (Post 1865720)
When is the best time to pay off your Bond? Anyone know for sure?
I know that realtors do not recommend paying off the Bond... however the
Interest is around 6% which is very high.

Thanks
Pay it off as soon as possible. The interest you're paying is high and NOT tax deductible.

We took out a Home Equity loan and paid it off. The RATE was lower AND the interest paid was deductible. Iike getting a twofor.

Mrprez 11-26-2020 07:48 AM
Our house, a Bungalow CYV was built in 2018. The bond was just north of $17k and the interest rate is 3.9%.

Stu from NYC 11-26-2020 07:53 AM
Quote:
Originally Posted by noslices1 (Post 1866004)
You could just get a second Mortgage at a lower rate and pay it off.
I could but if we decide to go to a larger home would still not get the money back for the bond in full.

retiredguy123 11-26-2020 07:55 AM
In a perfect world, you would pay off the bond, save money on the interest, and, when you sell, the buyer would reimburse you for the principal amount of the bond that you paid off. Unfortunately, it is not a perfect world, and the buyer will not reimburse you for the full principal amount. So, you need to assess the value of the potential savings in bond interest versus the loss of principal when you sell.

retiredguy123 11-26-2020 08:00 AM
Quote:
Originally Posted by fastboat (Post 1866043)
Pay it off as soon as possible. The interest you're paying is high and NOT tax deductible.

We took out a Home Equity loan and paid it off. The RATE was lower AND the interest paid was deductible. Iike getting a twofor.
I think for most retirees in The Villages, their mortgage interest is not really tax deductible either. The higher standard deduction and no Florida income tax makes it more advantageous to not itemize their deductions.

tvbound 11-26-2020 08:01 AM
If we come across two equally liked homes with the bond completely paid off on one and the other that still had a bond balance, we would factor in the non-bond home as being a bit advantageous, but would never consider paying a higher price that fully equals the difference in bond balances. As buyers, I don't think we're alone in that viewpoint.

rmd2 11-26-2020 08:10 AM
Quote:
Originally Posted by TNLAKEPANDA (Post 1865720)
When is the best time to pay off your Bond? Anyone know for sure?
I know that realtors do not recommend paying off the Bond... however the
Interest is around 6% which is very high.

Thanks
I paid mine off when I bought the house that I currently have lived in for 9 years. I'm glad I paid it off. If I hadn't paid it I would have paid interest all these years and still have owed the bond. The least that will happen if I sell it in the future is it will be a quick sell for someone who wants NO BOND vs what could be a $20,000 bond.

rmd2 11-26-2020 08:16 AM
Quote:
Originally Posted by Topspinmo (Post 1865838)
So, going to pay the interest which you will get NO money back on and still not pay the bond down that much.
////

dewilson58 11-26-2020 08:17 AM
Quote:
Originally Posted by Mrprez (Post 1866054)
Our house, a Bungalow CYV was built in 2018. The bond was just north of $17k and the interest rate is 3.9%.
Don't forget the monthly admin fee.............that greatly impacts your effective interest rate. $$$


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