Bond payoff

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  #16  
Old 11-25-2020, 07:31 PM
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You may not get all of your bond money back if you sell but a paid bond is a plus to buyers.
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Old 11-25-2020, 08:31 PM
Stu from NYC Stu from NYC is offline
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Originally Posted by Toymeister View Post
I also asked several RE agents who told me that you do get a portion of the paid off bond back. I went further and examined newer homes for sale with paid off bonds and they do sell for more than comps w/o bonds.
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.
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Old 11-25-2020, 08:58 PM
Carla B Carla B is offline
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Have been bond-free for ten years now, it's a good feeling.
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Old 11-25-2020, 09:48 PM
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Originally Posted by Carla B View Post
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
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Old 11-26-2020, 05:57 AM
mrf6969 mrf6969 is offline
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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"
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Old 11-26-2020, 06:35 AM
askcarl askcarl is offline
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Paying Off Your Bond
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Old 11-26-2020, 06:42 AM
TheWarriors TheWarriors is offline
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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.
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Old 11-26-2020, 06:44 AM
retiredguy123 retiredguy123 is online now
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Originally Posted by Topspinmo View Post
So, going to pay the interest which you will get NO money back on and still not pay the bond down that much.
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.
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Old 11-26-2020, 07:01 AM
eeroger eeroger is offline
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Default Bond Payoff

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Originally Posted by TNLAKEPANDA View Post
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
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.
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Old 11-26-2020, 07:04 AM
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Originally Posted by DAIII View Post
Sooner the better- the longer you wait the more interest is accrued. I paid mine off first year and it's a wonderful feeling to not pay double in 30 years with the interest.

With that said...

If you're not going to be here in 30 years.. or if you sell to move to another home. best to not pay it off as the bond follows the house not the owner.

I personally am staying in this home (no exceptions)
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.
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Old 11-26-2020, 07:06 AM
RICH1 RICH1 is offline
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Quote:
Originally Posted by DAIII View Post
Sooner the better- the longer you wait the more interest is accrued. I paid mine off first year and it's a wonderful feeling to not pay double in 30 years with the interest.

With that said...

If you're not going to be here in 30 years.. or if you sell to move to another home. best to not pay it off as the bond follows the house not the owner.

I personally am staying in this home (no exceptions)
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!
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Old 11-26-2020, 07:08 AM
Skunky1 Skunky1 is offline
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Is your Real estate agent a financial advisor?
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Old 11-26-2020, 07:12 AM
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Default Refinance the Bond

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Originally Posted by Stu from NYC View Post
That is exactly why we do not plan to pay off the bond early.

Have heard they might refinance the bonds to reduce the interest rate.
You could just get a second Mortgage at a lower rate and pay it off.
  #29  
Old 11-26-2020, 07:14 AM
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Quote:
Originally Posted by TheWarriors View Post
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.
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.
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  #30  
Old 11-26-2020, 07:19 AM
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TNLAKEPANDA TNLAKEPANDA is offline
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Quote:
Originally Posted by retiredguy123 View Post
I hate debt, but I have not paid off my bond. I think the biggest disadvantage to paying it off is that you will lose money when you sell the house. You will not be able to convince a buyer to reimburse you for the money you used to pay off the bond. And, very few people actually know how long they will keep their house before selling.
That’s a good point and I have thought about it. I just hate paying over $1000+ interest on a $1500 yearly bond payoff.
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