[dewilson58]

Originally Posted by terenceanne

Although it may not be financially sound - to have zero debt is comforting and a nice position to be in. Something financial people never take into account is peace of mind.
Get rid of all your debt including the bond. If you can afford it of course.

Very Financially Sound.

[richardc1947]

The answer is yes if you plan to live there for more than 4 or 5 years and save the 6% +/- interest. No, if you are going to resell it in just a few years in that it will bring very little more in the sales price, albeit it might be a quicker sale.

[GRACEALLEMAN]

THERE ARE TOO MANY CHOICES HERE TO BUY A HOME WITH A BOND. BUY A NICE USED HOME...(THERE ARE 1000S AVAILABLE. DONT BE FOOLED INTO BUYING NEW.)
ITS your life energy your are spending on a stupid "TAX" CALLED a BOND.

[dewilson58]

Originally Posted by GRACEALLEMAN

THERE ARE TOO MANY CHOICES HERE TO BUY A HOME WITH A BOND. BUY A NICE USED HOME...(THERE ARE 1000S AVAILABLE. DONT BE FOOLED INTO BUYING NEW.)
ITS your life energy your are spending on a stupid "TAX" CALLED a BOND.

[willbush]

Paying off the bond which interest/admin fee is high; after seeing it barely moved in amount left just like a mortgage we paid it off after the first year; huge savings on our tax bill where you pay it yearly

[petsetc]

Cash FLOW is King and offers the most/best flexibility.

My opinion is do not pay off bond for all the reasons previously stated and also, I suspect your current return on the money you would use to pay it off is as good or better than the bond rate all in.

A 30 year mortgage at today's rates is very cheap money-I just refinanced myself and never plan to pay extra on it.

Last thought - Cash FLOW is king.

FWIW

[Hiltongrizz11]

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.

Dude, this isn't even an argument. You just shared your opinion don't act so scientific

[dewilson58]

Originally Posted by Hiltongrizz11

Dude, this isn't even an argument. You just shared your opinion don't act so scientific

Pay or not pay are all opinions............what is best is an opinion.
Not to payoff & invest is an opinion.........must take into personal preference of debt.
Payoff & live debt-free is an opinion.
Never did like science class.

[jerseyclone]

Payoff bond , my interest rate was 7% plus a maintenance fee of $90/year. The villages is getting rich off this scam.

[dewilson58]

Originally Posted by jerseyclone

Payoff bond , my interest rate was 7% plus a maintenance fee of $90/year. The villages is getting rich off this scam.

FYI: The Villages is not getting your payments.

[JeepsterGlenn]

Keep in mind that the bond can be paid off after the house sale. I waited a year to see the annual cost and decided to pay it off before the cutoff date for next year’s bond payment. I had a year to think it over and confirm how long I wanted to stay in my home and ended up only paid one year’s interest.

[carol805]

Check here to see what you ultimately pay by not paying off bond. (From districtgov.org)

Amortization Schedules - Sumter

[DAVES]

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

My two cents worth-for free
We do not know you or your finances. I would seek professional advice from someone
you are willing to share all your information with. Hopefully an accountant that you have been dealing with for years. Why pay either off? It is far easier to tie your money, cash, into a house than to take it out should you need or want to. What are you, can you earn on that cash if you invest it. Yes, it is far more risk than having it sit in a day of deposit day or withdrawal account. Interest on the bond, yours may be less or more is 4-5%.
Mortgage is should be less than 3%. Long term stock market returns are 7-8%-depending on who or what you believe. I've done far better than that over the past 15 years.

You can easily set up your own annuity with out paying the outrageous commissions.
You go to a brokerage, put that cash into a fund and tell them to send a check every month that will cover your mortgage payment.

Whatever you decide. I would not do anything now. Our economy, our tax system is certainly in transition-like it or not. Our real dollar value is also in transition-like it or not.
Like the old advice. With the death of a spouse, or a divorce delay two years before making any commitment. I would wait until you move in full time. It is far less costly to do nothing then to do the wrong thing. Plan as you might, your taxes and your expenses will change dramatically when you quit working.

[PennyAnn]

It is not just the interest rate, which appears fairly low. They tack on large admin fees but don't really broadcast those. You'll feel like you pay forever, but never see the balance go down by much. Pay off the bond. As soon as you can. And lock your mortgage in with today's crazy low rates....you will win-win.

[Road-Runner]

Awesome responses, thank you to all who've replied! It helps to read through everyone's thoughts as they pretty much match my own considerations up to now. The info about the yearly admin fee on the bond is good to know. Unlike some potential buyers I did mentally add the bond amount to the list price of our home and considered that the true 'asking price' when comparing to other houses including used. Probably due to their location in a preferred central part of The Villages I couldn't find a used home with equivalent square footage for the same money as my new house south of 44. All good food for thought.

Thanks again, Jim