[Bill14564]

Originally Posted by terenceanne

Nobody has mentioned piece of mind - which apparently has no value. We have no mortgage and no bond. Does it add value to you house - of course it does. Anyone buying a house will favor a house with no bond all other things being equal.

All other things are very rarely equal. The bond payment that came out to be about $100 per month was not a factor for us.

We have since paid our bond since $0 per month is better.

[retiredguy123]

Originally Posted by ahill99

Does anyone know if the if the interest expense on the bond payment is tax deductible? My guess is that it is not.

Legally, it is not deductible, unless the house is rental property. Anything that appears in the non-advalorem section of your tax bill is not deductible because it is not based on the value of the house, like property tax and mortgage interest. Of course, you can deduct anything you want as long as you don't get audited by the IRS.

[valuemkt]

I won;t pay it off. I just look at it as part of the annual property tax. I would rather have the cash now, as I don;t expect to be around at year 30.

[Burgy]

Originally Posted by bsloan1960

New owner/first time- closing at the end of June.

(using approx. numbers) $20,000 bond paid over 30 years @$1100 per month = $33,000... Ouch!

I assume this is why some people choose to pay the bond off in cash. I called the Development District and there is no creative way to reduce the interest payments- it's either pay it off in full or pay it monthly.

With this in mind what is the best way to pay this bond?

Thanks,
Bill

If it was per month it would be over 300k

[OrangeBlossomBaby]

Originally Posted by bsloan1960

New owner/first time- closing at the end of June.

(using approx. numbers) $20,000 bond paid over 30 years @$1100 per month = $33,000... Ouch!

I assume this is why some people choose to pay the bond off in cash. I called the Development District and there is no creative way to reduce the interest payments- it's either pay it off in full or pay it monthly.

With this in mind what is the best way to pay this bond?

Thanks,
Bill

Most Villagers don't live in the same Villages property for 30 years. If you only live there 10 years, you will have paid in only 10 years worth of bond, and the new owners will be on the hook for the rest.

[Stu from NYC]

Originally Posted by OrangeBlossomBaby

Most Villagers don't live in the same Villages property for 30 years. If you only live there 10 years, you will have paid in only 10 years worth of bond, and the new owners will be on the hook for the rest.

Not many will still be vertical after 30 years.

[Spartan86]

Originally Posted by Glowfromminnesota

From a buyers perspective, we specifically were only looking at homes with no bond or low bond when we purchased ours in September.

We rarely if ever saw “no bond” in listings we were interested in - designer, 2+ or 3 garage and 2016ish or newer. However as metioned it would have been a player in an “all things being equal” discussion. Glad you found what you were after.

Like your avatar. Is that a Beaver on a trailer? Too big for a Cub, although the color is about right

[EdFNJ]

Originally Posted by Bogie Shooter

Easily checked so you will not be surprised……….
Go look at District 6….2.46%

Huh? I'm looking at my district 6 lot and it says 4.25%, the lot next to me is 5.25% (according to the web site listing) Been going through them all 1 at a time and (so far) they vary between 2.46 and 5.25. Seems all the Villa listings are 2.46 as well as a few non-Villas.

What am I missing? I thought they all are supposed to be the same.

[Bogie Shooter]

Originally Posted by EdFNJ

Huh? I'm looking at my district 6 lot and it says 4.25%, the lot next to me is 5.25% (according to the web site listing) Been going through them all 1 at a time and (so far) they vary between 2.46 and 5.25. Seems all the Villa listings are 2.46 as well as a few non-Villas.

What am I missing? I thought they all are supposed to be the same.

Have no idea what you are missing just posted what my rate is in unit 105….non villa.

Go call the finance department to get the right answer…."……………..

[Love2Swim]

Originally Posted by OrangeBlossomBaby

Most Villagers don't live in the same Villages property for 30 years. If you only live there 10 years, you will have paid in only 10 years worth of bond, and the new owners will be on the hook for the rest.

Depending on the interest rate, you need to look at your break even point. When we bought, ours was 7 years. I was glad we paid it off and saved all that interest. As it turns out we didn't move, but had we after 7 years we would have broken even financially, and, could put the house on the market advertising it as "NO BOND", which is a positive for those who look at total costs when purchasing.

[Altavia]

Originally Posted by Love2Swim

Depending on the interest rate, you need to look at your break even point. When we bought, ours was 7 years. I was glad we paid it off and saved all that interest. As it turns out we didn't move, but had we after 7 years we would have broken even financially, and, could put the house on the market advertising it as "NO BOND", which is a positive for those who look at total costs when purchasing.

What math told you breakeven was 7 years?

You can't ignore the time value of money. Money paid today is worth more than money paid in the future. Especially with inflation heading north of 7 percent.

Mortgages/loans are a form of inflation hedge.

[BlueStarAirlines]

So......it's per month?

[EdFNJ]

Originally Posted by Bogie Shooter

Have no idea what you are missing just posted what my rate is in unit 105….non villa.

Go call the finance department to get the right answer…."……………..

I thought you were saying all district 6 is the same and BECAUSE yours was whatever. My understanding was the rates were all supposed to be the same within a district. Evidently not unless they are mostly all listed wrong one way or the other. NOW I will call to find my SPECIFIC rate not that it really matters for me at this point, just curious.

[John Mayes]

Originally Posted by bsloan1960

New owner/first time- closing at the end of June.

(using approx. numbers) $20,000 bond paid over 30 years @$1100 per month = $33,000... Ouch!

I assume this is why some people choose to pay the bond off in cash. I called the Development District and there is no creative way to reduce the interest payments- it's either pay it off in full or pay it monthly.



With this in mind what is the best way to pay this bond?

Thanks,
Bill

You sure your math is correct? $1,100 per month?

[Bogie Shooter]

Originally Posted by John Mayes

You sure your math is correct? $1,100 per month?

There is a wealth of information after post#1!