Bond questions

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  #16  
Old 06-17-2022, 12:37 PM
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dewilson58 dewilson58 is offline
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Originally Posted by Bill14564 View Post
Some would argue that with a 3% interest
PLUS Admin Fee....................the effective rate is not that good.
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  #17  
Old 06-17-2022, 12:47 PM
Bill14564 Bill14564 is offline
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Originally Posted by dewilson58 View Post
PLUS Admin Fee....................the effective rate is not that good.
Absolutely! I forgot the fixed admin fee which raises the effective rate. It looks like that went down be $3 also.

Interesting: I can't seem to figure out how interest is calculated. It certainly isn't as simple as 3.05% of the previous year's balance. It isn't even as simple as 3.05% of the previous year's balance amortized monthly.
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Yakima, WA
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Village of Hillsborough
  #18  
Old 06-17-2022, 01:11 PM
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Originally Posted by bsloan1960 View Post
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, you call them they are quite helpful. There are particular days to pay it off after that day, you pay interest, if I recall it is for the 1/4 or perhaps it is semi annual.
We paid ours off. You will find endless opinions. Will recover when you sell?
Say the number is 20,000. Will you recover say landscaping etc. You will if you have a good broker who will explain the VALUE.

Ours was also 5% we were told when we paid it off that it was due to be adjusted.
I assumed lowered. Now interest rates are going up. Finance we cannot advise you without should be private information. The questions are what are you getting on that money now-net after taxes. Once you pay the bond that money is tied in your home.
Should you need that money, you would need a loan or to refinance the mortgage.
I've not looked up close but I think mortgage money is up to 5.5%.
  #19  
Old 06-17-2022, 01:17 PM
Stu from NYC Stu from NYC is offline
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Originally Posted by Bill14564 View Post
Absolutely! I forgot the fixed admin fee which raises the effective rate. It looks like that went down be $3 also.

Interesting: I can't seem to figure out how interest is calculated. It certainly isn't as simple as 3.05% of the previous year's balance. It isn't even as simple as 3.05% of the previous year's balance amortized monthly.
As the bond balance is reduced the admin fee raises effective interest higher and higher and that is why we will wait a few more years. Now the extra cost is fairly small compared to balance in a few years gets larger and larger.
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Old 06-17-2022, 01:18 PM
Bogie Shooter Bogie Shooter is offline
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My rate is 2.46%
Find yours here................
Amortization Schedules - Sumter

Bond information............

Residential Bond Assessment Information
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  #21  
Old 06-17-2022, 01:20 PM
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Originally Posted by JohnN View Post
We paid the bond at closing. The interest rate at that time was 7% or so and market rates were much lower so it was an easy decision. Do what's best for your wallet.
Ours was 5% mortgage money was 3.2%. Hum a choice same 20,000 pay 5% or pay 3.2%. That bond, supposed to pay for streets or whatever. It is normally in the price of the home. A home priced at 350 is really 350+20=370. Would you pay 370 for it?
What would 370 buy you where they do not have a bond.
  #22  
Old 06-17-2022, 01:32 PM
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Originally Posted by Papa_lecki View Post
I think each district has its own bond - The Villages doesn’t refinance it, the district does. Did your payment go down? I would think that is something you would be told via a letter, not the internet
No shortage of confusion. Stuff like I heard. It is easy to check what is. We paid our off.
The interest was 5% at the time. We were told it was being renegotiated. Someone said it is now 3%. If that is so, I would be surprised. Interest on a ten year treasury is around 3.3%
Three percent would be below market.
  #23  
Old 06-17-2022, 01:41 PM
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Originally Posted by DAVES View Post
No shortage of confusion. Stuff like I heard. It is easy to check what is. We paid our off.
The interest was 5% at the time. We were told it was being renegotiated. Someone said it is now 3%. If that is so, I would be surprised. Interest on a ten year treasury is around 3.3%
Three percent would be below market.
Ok, 3.05%:
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Randallstown, MD
Yakima, WA
Stevensville, MD
Village of Hillsborough
  #24  
Old 06-17-2022, 01:44 PM
LuvtheVillages LuvtheVillages is offline
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Each district has its own bond, and its own interest rate. I am in District 8.

Our bond was refinanced in 2020 when rates were very low. We are paying 3.73%, plus an admin fee of just under $100 annually. We will be paying that rate through 2039.
  #25  
Old 06-17-2022, 03:05 PM
Garywt Garywt is offline
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Quote:
Originally Posted by bsloan1960 View Post
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
Not sure where you got you numbers but $1100 a month can’t be in the ballpark. I pay no attention to mine, it is collected through escrow in my monthly payment and the bank pays it every year. I don’t even know I am being charged.
  #26  
Old 06-17-2022, 03:11 PM
Bogie Shooter Bogie Shooter is offline
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Quote:
Originally Posted by DAVES View Post
No shortage of confusion. Stuff like I heard. It is easy to check what is. We paid our off.
The interest was 5% at the time. We were told it was being renegotiated. Someone said it is now 3%. If that is so, I would be surprised. Interest on a ten year treasury is around 3.3%
Three percent would be below market.
Easily checked so you will not be surprised……….
Go look at District 6….2.46%
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  #27  
Old 06-17-2022, 03:11 PM
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I belive it's $1100 per year not $1100 per month.
  #28  
Old 06-17-2022, 03:46 PM
Dotneko Dotneko is offline
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Per year not per month.
  #29  
Old 06-17-2022, 07:30 PM
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Quote:
Originally Posted by Garywt View Post
Not sure where you got you numbers but $1100 a month can’t be in the ballpark. I pay no attention to mine, it is collected through escrow in my monthly payment and the bank pays it every year. I don’t even know I am being charged.
Actually that is too common. So much per month is common You should check and know. It is so much per month is common sales tactics As is first month is free. They know exactly how many people will forget to cancel after the first free month.

Where does the money go? It is a good idea to write it down for a month.
  #30  
Old 06-17-2022, 07:41 PM
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Originally Posted by Bill14564 View Post
We paid off our bond. We calculated the break-even point to be about seven years (YMMV). We felt we would be in this house long enough that we would save money by not paying 8+ years of interest.

Some would argue that with a 3% interest rate you will be better off by investing the money. That's a good theory and sometimes it works to your advantage. However, if we had invested that $18,000 we would have something like $14,000 today and still have a bond payment due. Given what we are seeing today, we are happy with the choice we made.
Another perhaps not true this year. Investments, my statement shows I've been up every year for the past 15. This year I am down. The first in 15 years. On top of that the consumer price index is up almost 9%. Since, we pay that with after tax dollars, to be even you need to make ??? 12-14%. Please don't tell me it is only 11.7% for you, it is close enough for all of us.

People on this site will argue about anything. There is some interesting stuff. I would check out anything. As I've posted before legal, investment, even lawn care I would check out anything, even my posts, Before acting.
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