What rate have you earned in your investments in the last six months? If it isn’t negative then please share.

no probably
no need to ask district

See post #20,,,,,,,how to is there.

You address two good points I hadn't considered. One being if the extra $ in paid bond would affect how the mortgage underwriters appraise the loan. The other point, which I think is more intriguing is that I've always been looking at this with the idea that existing mortgage rates are less than the bond rate. However, as you point out, that's not the case right now. That changes the dynamic. Having paid off the bond, and now wanting to get it back in purchase price is working against you compared to the house for sale that has that same amount of bond locked in a at a lower rate.
Good point.

Why to I care. It was setup when I bought my house, it is part of my mortgage payment. I don’t track my property tax either. The only time I need my tax amount is when I an filing my taxes.

The only way to have a headache is to track it yourself. I let the bank take care of it so no headache for me.

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

Well you guys must be the "educated" buyers who "can do math" that I was told don't exist. Unicorns.

But, seriously, what if you liked a house, but it had a bond, would you have considered the bond as part of the cost of the house?

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.

Bond interest expense tax deductible?
 

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

It is, until audit.

The bond is deductible until audit.


:posting:

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.

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.

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.

wrong math
 

If it was per month it would be over 300k

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.

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 ;)

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…."……………..

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.

So......it's per month? :a20:

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.

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

There is a wealth of information after post#1!:oops:

Don't worry about if the bond adds value to the home
Forget about "piece of mind" with paying off a $20,000 bond
These are so far down the list of deciding factors.

What you need to do is ask yourself, what will I do with the money if I don't pay off the bond.

If you will keep it under you mattress, then pay off the bond.
If you will renew your CD, then pay off the bond.
If you will keep your baseball cards and coin collection, then pay off you bond.

You have to honestly ask yourself, can I invest the money and guarantee myself a better ROI (return on investment) than 3.7% per year over 30 years. I know PLENTY of investment vehicles that can easily attain that goal.

There are different bond series in different districts, for example CDD 10 has a 2012 and a 2014 series bond (phase 1 & 2), the bonds have different rates but everyone within each series has the same rate but may have a different principal amount depending on their unit #.
CDD10 2012 bond was just reissued with a significantly lower rate (3.05% vs. its previous of nearly 6%) saving residents with phase 1 bonds significantly.

Most of the bonds issued for development in The Villages have a 10-year call and are reissued if the market conditions are good and a better rate can be achieved. Don't expect any to be reissued in the next year or two thanks to the current economy.

You can find your rate here Amortization Schedules - Sumter