[Road-Runner]

After reading through hundred's of listings in the Villages over the last several years prior to buying, it seems like the bond is almost an afterthought compared to the listing price. Although "No Bond" is listed as a selling point I don't know that it registers with most buyers how much debt the average bond is on new homes until after they pick a home to buy.

With that in mind, would it be crazy to pay off the bond vs paying down the mortgage by an equivalent amount? We're still working and our house in Bradford will be a 2nd home for at least 2 more years. When we sell here we'll want to reduce our monthly costs to the minimum possible so planning on using all the proceeds from the sale to reduce our only remaining payment, the house.

Just curious if others have gone through the same decision process.

Thanks, Jim

[asianthree]

Paying down mortgage is big money saver, on interest. However some companies will reduce the monthly payments for a fee. Citizens First does for
175. But there are some lenders that will not.
Bond if you r planning on selling in 5 or 6 years, don’t pay off the bond.

However your financial person can put in better perspective for you

[dewilson58]

Bond is at a higher rate of interest.......mostly with the Admin Fee.

Some say don't pay off bond because you will not get it back at sale. I disagree.
If you ain't planning on selling, this argument is mute.

[retiredguy123]

Originally Posted by dewilson58

Bond is at a higher rate of interest.......mostly with the Admin Fee.

Some say don't pay off bond because you will not get it back at sale. I disagree.
If you ain't planning on selling, this argument is mute.

I agree, but sometimes plans change. As soon as you pay off the bond, the cash out value of your house will immediately decrease. You will only come out ahead if you actually keep the house for about 8 years or longer as "planned".

[Bogie Shooter]

Originally Posted by Road-Runner

After reading through hundred's of listings in the Villages over the last several years prior to buying, it seems like the bond is almost an afterthought compared to the listing price. Although "No Bond" is listed as a selling point I don't know that it registers with most buyers how much debt the average bond is on new homes until after they pick a home to buy.

With that in mind, would it be crazy to pay off the bond vs paying down the mortgage by an equivalent amount? We're still working and our house in Bradford will be a 2nd home for at least 2 more years. When we sell here we'll want to reduce our monthly costs to the minimum possible so planning on using all the proceeds from the sale to reduce our only remaining payment, the house.




Just curious if others have gone through the same decision process.

Thanks, Jim

Do a search on here for Bond payoff. To get hundreds of helpful (?) opinions.

[Road-Runner]

Originally Posted by Bogie Shooter

Do a search on here for Bond payoff. To get hundreds of helpful (?) opinions.

I'll do that, thanks!

[charlieo1126@gmail.com]

I’m selling and closing on my 6 th home in villages , I’ve never paid the bond off ( never) some people will try to offer you less money they are people who need to be ignored, most buyers couldn’t care less the longest any home I’ve sold here took was 22 days and that was an expensive golf course home . I have had homes and condos I’ve lived in longer but I would never put more then 20% down let the profit in house ride put the money that your trying to pay down the mortgage into a safe index fund like Vanguard you’ll do better then paying down mortgage

[Stu from NYC]

What is interest rate on bond and mortgage?

Most people seem to move at least once after moving here so generally popular wisdom is not paying off the bond.

[tophcfa]

If the interest rates are similar it is a no brainer to pay off the bond since the interest on the mortgage is tax deductible.

[Stu from NYC]

Originally Posted by tophcfa

If the interest rates are similar it is a no brainer to pay off the bond since the interest on the mortgage is tax deductible.

Wonder how many people deduct interest on bond and get away with it?

[JohnN]

We have planned to keep this home for a long time and paid off the bond.
The bond interest rate was quite a bit higher, so we paid that off first.
If we were not keeping the home for long (I don't know, 5 years or less) , we'd have paid the mortgage down.

[Stu from NYC]

Originally Posted by JohnN

We have planned to keep this home for a long time and paid off the bond.
The bond interest rate was quite a bit higher, so we paid that off first.
If we were not keeping the home for long (I don't know, 5 years or less) , we'd have paid the mortgage down.

We have been in this house just over a year and will probably be herer for the rest of our lives. Would kind of like more space but will make do.

Give it another year or so and if we still think we will stay will definitely pay off the bond.

[retiredguy123]

Originally Posted by Stu from NYC

Wonder how many people deduct interest on bond and get away with it?

I think that most retirees in The Villages do not have enough deductions to make it worth doing an itemized tax return, and so they use the standard deduction anyway.

[Garywt]

My bond interest is low as is the payment so I just pay it as part of escrow with the mortgage. If paying the bond lowers the payment more than paying the mortgage down then do it that way. I think we will have our northern house a lot longer than 2 years.

[Stu from NYC]

Originally Posted by retiredguy123

I think that most retirees in The Villages do not have enough deductions to make it worth doing an itemized tax return, and so they use the standard deduction anyway.

Wonder what percentage of villagers actually have a mortgage which would make it more likely to itemize.