[Hawkwind]

I just looked at two homes in the Bonnybrooke area that are both designers according to the records filed at that time. In one case the SPEC ASMT-BOND went from $938.21 in 2004 to $936.04 in 2009. So that indicates to me that the SPEC ASMT-BOND is the total interest and principle of the bond as if it were only interest it would have dropped more than $2.17. The other property only dropped $.55 from 2005 to 2009.

[zcaveman]

Originally Posted by Hawkwind

Z
Thanks for checking but if you look at any of the homes that I used in my example on Lake Ridge drive and then look at the payment history you will see that there are three lines in the Non-Ad Valorem Assessments.

UNIT xxx SPEC ASMT-MAIT $1,665.82
UNIT xxx SPEC ASMT-BOND $3,914.12
VILLAGES FIRE DISTRICT $81.00

Total Assessments $5,660.94

If the $3,914.12 is interest only then do you receive another statement of what the bond principle is for that year? Do you write out two checks, one for your taxes and another for bond principle? I am well aware of the maintenance fee and how it can change from year to year.

I will play around and try to find some homes that are north of 466 to see how they pan out. If the ASMT-BOND is only interest then a 10 year old home would show a decrease in the figure over time.

You cannot pay down your bond principle. You either pay the entire bond off in July or you pay the interest payment that year.

The line UNIT xxx SPEC ASMT-MAIT $1,665.82 is your share of what the CDD determined it needed to maintain your district for the coming year.

The line UNIT xxx SPEC ASMT-BOND $3,914.12 is your bond interest for the year.

I do not have a bond so I do not have the ASMT line. I had to look at a few other houses in the area to see the ASMT line.

I think it is a fixed 30 year "loan" so it will never decrease.

I just read it yesterday. http://www.districtgov.org/howDoI/PayBond.aspx

[Bogie Shooter]

ese assessments are scheduled to be repaid in annual charges that show up on the Non-Ad Valorem section of your county property tax bill until they are paid off. The annual assessment includes principal, interest and a small administrative fee to process the payment.
This is from the distgov site.

[JimJoe]

Originally Posted by zcaveman

You cannot pay down your bond principle. You either pay the entire bond off in July or you pay the interest payment that year.

The line UNIT xxx SPEC ASMT-MAIT $1,665.82 is your share of what the CDD determined it needed to maintain your district for the coming year.

The line UNIT xxx SPEC ASMT-BOND $3,914.12 is your bond interest for the year.

I do not have a bond so I do not have the ASMT line. I had to look at a few other houses in the area to see the ASMT line.

I think it is a fixed 30 year "loan" so it will never decrease.

I just read it yesterday. http://www.districtgov.org/howDoI/PayBond.aspx

I think the line ...The line UNIT xxx SPEC ASMT-BOND $3,914.12... is not just your bond interest.. I think it is your yearly payment to pay off the bond, and that payment includes interest and payment on the principal, just like an other loan...
But like someone else on here says.. I could be wrong.

[zcaveman]

Originally Posted by JimJoe

I think the line ...The line UNIT xxx SPEC ASMT-BOND $3,914.12... is not just your bond interest.. I think it is your yearly payment to pay off the bond, and that payment includes interest and payment on the principal, just like an other loan...
But like someone else on here says.. I could be wrong.

You are correct. I am wrong. However, like any 30 year loan, the princpal is only a tad compared to the interest.

[JimJoe]

Originally Posted by zcaveman

You are correct. I am wrong. However, like any 30 year loan, the princpal is only a tad compared to the interest.

I agree the principal part of the payment would be small. Do you think it is wise in this economy to pay off the bond? I intend to when I buy. IF I ever sell, I am sure buyers will calculate that into any home they make an offer on, paid or not.

[ajbrown]

Originally Posted by JimJoe

I agree the principal part of the payment would be small. Do you think it is wise in this economy to pay off the bond? I intend to when I buy. IF I ever sell, I am sure buyers will calculate that into any home they make an offer on, paid or not.

I think you can be right on both sides if the paying off the bond issue from a financial perspective. IMO, it depends largely on your risk tolerance. I am not advocating either way, but a point to consider (just one in many) is that this may not be a benefit to all buyers, as the assessed value for future taxes has changed.

As an example, lets say my neighbor and I both paid $200,000 and we owe $20,000 on the bond. We both sell at the same time. Both homes go on the market, mine for $200,000 + $20,000 for bond, theirs for $220,000.

My home for the new buyer will be assessed at $200,000 versus the neighbors will be $220,000.

Not the deciding factor, just another line in your matrix when deciding to pay. My issue is that the first question in the matrix is: Do you have $20,000. I cannot get past that one

BTW, lots of threads on this subject in TOTV archives...

[Russ_Boston]

Originally Posted by Dirigo

Are there changes for you in the wind, Russ? If so, congrats!

Linda and I will be down in May with the intent of getting an RN job (for me) and buying a home. That is if everything goes to plan. I don't think we'll be living down there until early next year but who knows?

[Russ_Boston]

Don't you just roll the current bond (assuming you don't want to pay it off) into a mortgage payment? So can't it be less than 30 if that is what you want? I assume that even if it is amortized over 30 you could still pay additional each month towards the principal to pay it off early?

[Army Guy]

Russ, no you can not. When we were buying last summer, we thought we were going to have to take a loan out, and I tried to do that. The loan places and banks will not let you do that. They will give you only the home price for the loan. So waiting till July to pay the bond off. The good thing is we bought a CYV so bond is only $12,000.
Maybe we will get to see you in May.

Army Guy

[ajbrown]

Originally Posted by Russ_Boston

Don't you just roll the current bond (assuming you don't want to pay it off) into a mortgage payment? So can't it be less than 30 if that is what you want? I assume that even if it is amortized over 30 you could still pay additional each month towards the principal to pay it off early?

I do not believe you can "pay it down", or make payments as part of your mortgage. Once a year, I can pay it off in full. If I do not then it comes with my real estate taxes. I think mine is $1500ish.

[Russ_Boston]

Thanks Army - 15th though the 31st.

[Bogie Shooter]

What if?
Since the annual payment is mostly interest, wouldn't it be in ones best interest to reduce the interest or at least make it legally tax deductible?

If you paid off the bond by using a home equity loan there could be savings in the interest rates plus home equity interest is tax deductible. And if you wanted you could apply more to the principle each year. Even making monthly payments which would further reduce interest cost.
Am I missing something?

[JimJoe]

Originally Posted by Bogie Shooter

What if?
Since the annual payment is mostly interest, wouldn't it be in ones best interest to reduce the interest or at least make it legally tax deductible?

If you paid off the bond by using a home equity loan there could be savings in the interest rates plus home equity interest is tax deductible. And if you wanted you could apply more to the principle each year. Even making monthly payments which would further reduce interest cost.
Am I missing something?

If you had equity in the home as a result of a larger down payment you could do that, but why not just pay off the bond with the extra down payment money and be done with it, unless you can itemize on your tax return (in order to deduct interest) and your tax savings by deducting the interest paid would be more than the cost of the interest on the bond, I agree. But.. home equity loans have fees attached to them too..
If you did the math and you wanted to handle the paperwork I agree with your idea.

[JimJoe]

Originally Posted by ajbrown

I think you can be right on both sides if the paying off the bond issue from a financial perspective. IMO, it depends largely on your risk tolerance. I am not advocating either way, but a point to consider (just one in many) is that this may not be a benefit to all buyers, as the assessed value for future taxes has changed.

As an example, lets say my neighbor and I both paid $200,000 and we owe $20,000 on the bond. We both sell at the same time. Both homes go on the market, mine for $200,000 + $20,000 for bond, theirs for $220,000.

My home for the new buyer will be assessed at $200,000 versus the neighbors will be $220,000.

Not the deciding factor, just another line in your matrix when deciding to pay. My issue is that the first question in the matrix is: Do you have $20,000. I cannot get past that one

BTW, lots of threads on this subject in TOTV archives...

I am not sure about in Florida but I "think" in general the assessed value is not merely based on the amount you paid, but more so on the market value of your home as compared to nearby similar properties. Now if you challenged your assessment based on a declining market the cost of the home might be a more important factor. I would like to hear more on this from someone who deals with this issue in Florida please.

Your idea raises interesting points... Why does the seller not include the bond in the cost of the home? Does that effectively reduce the "Price" of the home thereby making it easier to get an appraisal that justifies the price for mortgage approval and reducing the amount of the down payment? Does it lower the initial assessment because it is more likely to be based on the cost of building where there are not similar properties, thereby effectively making homes built in TV more tax affordable until they are at least reassessed than ones that include the cost of infrastructure in the initial purchase price? I assumed there were reasons to have a "bond".. and the more I think about it the more interesting it becomes. I am sure there are other ramifications I have not thought of. Please help with more ideas. Thanks.