[jdsl1998]

How is the bond on our house paid? What is the impact if we pay it off this summer?

[laceylady]

The bond is paid with your property taxes. If you pay it off and sell your house, you will have to eat the value of the bond. Your house will not sell for a higher price than one where the bond is not paid off. However, you will save the interest you would have paid every year on the bond. An alternative is to take out a home equity loan to pay off the bond. The interest on that loan will be tax deductible if you itemize. Currently your bond payment including the interest that is included in your property taxes, is not tax deductible.

[jdsl1998]

Thanks, LaceyLady. Very clear and helpful.

[KeepingItReal]

[QUOTE=laceylady;649681] If you pay it off and sell your house, you will have to eat the value of the bond. Your house will not sell for a higher price than one where the bond is not paid off.

I have to totally disagree with this information above and I am certain it cannot be proven. If you want to pay 7% interest and an annual fee on over $21K which is nearly $1,500 plus a very small amount on the principal for 30 years it your call.

http://www.districtgov.org/departmen...bond_info.aspx

http://www.districtgov.org/PDFView/P...20121129000801

[Dafoe]

HI
At 2.65% interest over 15 years - versus ?? 5% - 6% for 20 years, we figure we pay $400/ less per year and 5 less years. If we sell in 15 years, it will be a marketable
'good buy" for the next person. We're paying ours off.

[784caroline]

Agree with Laceylady...I dont know what Keepingitreal is talking about.
If you pay the bond off say within the first few years of ownership and then for whatever reason have to sell shortly after you paid the bond off,you will not, in most cases, recoup the cost of the Bond in the sale of the house.

To someone new to TV buying a house, it is bery difficult for them to rationalize why one house is priced at $300k and the other..identical house identical type of lot, is priced at $320k (bond paid)......which one do you think will sell quicker?

[laceylady]

Keeping It Real is speaking as a 'frog'--he plans to stay in that particular huse until he croaks. In that case it makes sense to pay off the bond or refinance it to a lesser interest rate.

I usually don't stay in one home very long. So for us, paying off the bond doesn't make sense. If we are still here in seven years (my usual time for a house) and planning to stay, we will pay off or re-fi the bond.

[jimbo2012]

[quote=KeepingItReal;649698]

Originally Posted by laceylady

If you pay it off and sell your house, you will have to eat the value of the bond. Your house will not sell for a higher price than one where the bond is not paid off.

I totally agree, it's about $3 a day to pay it off,

keep the cash in play or for a rainy day.


Not to get off topic there is controversy about it being tax deductible.

[graciegirl]

We didn't.

Lot of funerals at St. Timothys.

[Dcljake]

As someone that plans to be moving to The Villages on the next year or two, I frequently look at the listings for pre-owned homes for sale. I always looks the ones that say "low bond" or "bond paid" first. I think the decision is a personal one and you have to weigh the high interest and no tax benefit of paying the bond off over time, against low interest tax deduction of a home equity loan, against how long you expect to be in the house. No one answer fits everyone.

[bigallis1]

One couple we met on one of our visits to TV were telling us that the husband was really struggling with wanting to pay their bond.
After he consulted with a close friend, the friend told him that, "the only person who will be happy that the bond is paid is your wifes next husband".
They did not pay their bond off and neither will we when we get there!

[kbace6]

Originally Posted by Dcljake

As someone that plans to be moving to The Villages on the next year or two, I frequently look at the listings for pre-owned homes for sale. I always looks the ones that say "low bond" or "bond paid" first. I think the decision is a personal one and you have to weigh the high interest and no tax benefit of paying the bond off over time, against low interest tax deduction of a home equity loan, against how long you expect to be in the house. No one answer fits everyone.

I look for the same on pre-owned homes. "low bond" or "bond paid"

[BettyCrocked]

Ditto this. When I was looking at houses last month, I didn't even click the link on houses that didn't say "bond paid".
You may not recoup it in price, but you sure will get more looks and offers.

Originally Posted by Dcljake

As someone that plans to be moving to The Villages on the next year or two, I frequently look at the listings for pre-owned homes for sale. I always looks the ones that say "low bond" or "bond paid" first. I think the decision is a personal one and you have to weigh the high interest and no tax benefit of paying the bond off over time, against low interest tax deduction of a home equity loan, against how long you expect to be in the house. No one answer fits everyone.

[mickey100]

Originally Posted by BettyCrocked

Ditto this. When I was looking at houses last month, I didn't even click the link on houses that didn't say "bond paid".
You may not recoup it in price, but you sure will get more looks and offers.

That makes a lot of sense. You may not recoup all the bond but you will recoup some for sure, and will get more looks, hence better chance of selling. Not all houses sell equally as quickly or even at all, despite what some on this forum will try to tell you.

And that bond payment each year adds up quickly, but the bond balance does not drop proportionally. For example, our house, purchased 7 years ago, had a bond balance of almost $16K. Adding up the yearly bond payments, which are NOT legally deductible on taxes, we would have spent $8600 and yet the bond balance would only have dropped $1700. We paid ours off, and I'm glad we did.

[graciegirl]

There isn't a right or wrong.

If you absolutely think that there is no way you will EVER, EVER, move again in the forseeable future, pay it off.

But if you think you might want a bigger house, a smaller house, and especially a bigger garage. don't.

AND houses are easy to sell here IF

They are well presented.

Priced right,

Belong to non smokers.

and are perfectly clean.

They are much easier to sell here than anywhere else in this country.

So easy that many people sell them without a realtor.

BUT...if you are a bloom where you are planted person.......THEN

Pay off the bond.Especially if you are a "youngun".