Originally Posted by CoupleNCA (Post 2277349)

We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer to my very direct question).

My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.

I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.

Can anybody please answer this question honestly? My assigned realtor can't or won't.

Originally Posted by Travelhunter123 (Post 2277853)

In theory the price of the home where the bond is paid off should be higher than a home still has a bond. In actuality my realtor advised me not to pay off the bond as the resale values seldom reflect the full value of the bond payoff

Originally Posted by charlieo1126@gmail.com (Post 2277864)

my brand new home in 2007 had popcorn in Virginia trace after the tornado came through and recked it there was no more popcorn

Originally Posted by BlueStarAirlines (Post 2277861)

Risking beating this dead horse any farther.......

A few of the posts in this thread talk about high bond interest rates, but mine its only 3.18% (District 13). My credit union has CDs paying 5.01%. Until those CD rates drop it wouldn't make much sense to use those funds to pay off the bond.
Looking at District 15 their rates are 5.19% for the units listed with their total bonds $50k and up.

When considering a home, it shouldn't just be bond vs no-bond, but also interest rate on the bond.

Originally Posted by Pat2015 (Post 2277870)

That’s why I’ve never paid off the bond on any of the houses I’ve purchased in TV. Paying off the bond does not increase the value of the house.

Originally Posted by BrianL99 (Post 2277744)

Where did I say it was smart or not smart to pay off a bond?

& if someone sells a home in 3 years, you're right ... he didn't pay $20,000 ... he/she paid the interests & costs and borrowed the money. Those "near 4% Bonds" you mentioned, were a great deal when you could borrow money at 3%, huh?

A bond is just another type of mortgage. You borrow the money and pay it back over time. The exact same considerations someone would make with a mortgage, is exactly what you'd do with a Bond. Weigh the interest rates and do what you think is prudent. It's just a mortgage that's secured differently. As someone else pointed out, it's not backed with a personal guaranty, but backed by it's priority lien, so it's not a "personal debt".

The one and only time I can think of, when a Bond is different than a mortgage from a Buyer's perspective, is when the financing ratio is tight. A Primary Lender who's selling mortgages on the secondary market, has Loan to Value ratios to worry about. A CDD Bond is a slightly different circumstance from that viewpoint. That said, it sort of washes itself out, as it affects income to expense ratios.

Originally Posted by Pat2015 (Post 2277876)

I’d rather pay the 4% interest on a 20k bond over three years rather than pay the bond off at closing if I sell in 3 years! Paying off the bond does not increase the appraised value of the property.

Originally Posted by Pat2015 (Post 2277870)

That’s why I’ve never paid off the bond on any of the houses I’ve purchased in TV. Paying off the bond does not increase the value of the house.

Originally Posted by retiredguy123 (Post 2277902)

I look at it this way. If I pay off a $20K bond, the best I can do when I sell is to break even by getting a buyer to pay $20K more than the appraised value. But, most likely, I will get less than the $20K. And, if the current CD interest rate is comparable to the bond interest rate, it makes no sense to pay off the bond.

Originally Posted by retiredguy123 (Post 2277902)

I look at it this way. If I pay off a $20K bond, the best I can do when I sell is to break even by getting a buyer to pay $20K more than the appraised value. But, most likely, I will get less than the $20K. And, if the current CD interest rate is comparable to the bond interest rate, it makes no sense to pay off the bond.

Originally Posted by ron32162 (Post 2277917)

NOT A REALTOR is the first thing Village sales people are Sales agents with a real estate license and their principal is the builder not the buyer. You can only buy new homes from the builder here in The Villages.

Originally Posted by Bill14564 (Post 2277907)

Perhaps today, but what would your calculation have been for the previous five years when CD rates were below 3%? In 2019 would you have made the argument that even though the bond rate was higher than the CD rate you were not going to pay it off?