Villages Bond Refinancing

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  #16  
Old 03-28-2020, 05:18 AM
noslices1 noslices1 is offline
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Simple, go get a 3% mortgage for the amount of your bond and pay it off.
  #17  
Old 03-28-2020, 06:27 AM
dsnrbec dsnrbec is offline
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Several posters have said they recovered the cost of the bond payoff when they sold. My concern would be a potential buyer who was planning to get a mortgage which would trigger an appraisal. If a seller has done any significant improvements and paid off their bond, it would be hard for an appraiser to give them the value they need after looking at comparables. You might be ok if you’ve owned your home for a long time but if not, you will be disappointed.
  #18  
Old 03-28-2020, 06:48 AM
Ginsanders Ginsanders is offline
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Just a note, bonds are not allowed in Lake County. One of the many reasons we bought in the northern part of The Villages. No bond applicable.
  #19  
Old 03-28-2020, 06:53 AM
VApeople VApeople is offline
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Quote:
Originally Posted by Goldwingnut View Post
2016 bonds=3.35%.
We closed on our house in Sept 2016 and were told our bond interest rate was 6%.
  #20  
Old 03-28-2020, 06:55 AM
wine5465 wine5465 is offline
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Great explanation! Obviously
  #21  
Old 03-28-2020, 07:00 AM
mydavid mydavid is offline
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After 16 years I still owe $4,000 on my bond costing me just shy of $700 a year on my taxes a year, time to pay this thing off
  #22  
Old 03-28-2020, 07:04 AM
rlcooper70 rlcooper70 is offline
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Who do you believe is getting the 6% interest rate. Yes you and I are "paying" it but who do you think is profiting?
  #23  
Old 03-28-2020, 07:07 AM
Taylor32162 Taylor32162 is offline
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Default Interest on a home equity loan

Quote:
Originally Posted by bagboy View Post
If you pay off your bond, you don't pay interest. You can refinance to get enough to pay the bond or you can get a home equity loan/credit line which interest is still a tax deduction .
Interest is only tax deductible f the money is used for home improvements.
  #24  
Old 03-28-2020, 07:12 AM
MandoMan MandoMan is offline
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Quote:
Originally Posted by dsnrbec View Post
Several posters have said they recovered the cost of the bond payoff when they sold. My concern would be a potential buyer who was planning to get a mortgage which would trigger an appraisal. If a seller has done any significant improvements and paid off their bond, it would be hard for an appraiser to give them the value they need after looking at comparables. You might be ok if you’ve owned your home for a long time but if not, you will be disappointed.
I paid full price on a 22 year old home, without dickering, because the bond had been paid and it had a brand new roof, HVAC system, and kitchen appliances. Those are major cash outlays I won’t need to lay out.
  #25  
Old 03-28-2020, 07:20 AM
wilkinson wilkinson is offline
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You can refinance your home at 3% to pay off the 6% bond - hope that upsets the 6% bond holder :-)
  #26  
Old 03-28-2020, 07:21 AM
wilkinson wilkinson is offline
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Can you take that interest as a deduction if you take the standard deduction?
  #27  
Old 03-28-2020, 07:25 AM
VApeople VApeople is offline
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Quote:
Originally Posted by rlcooper70 View Post
Who do you believe is getting the 6% interest rate.
The people who put up the money and were told the return would be 6%.

Quote:
Originally Posted by rlcooper70 View Post
Yes you and I are "paying" it but who do you think is profiting?
Same answer. The people who put up the money and were told the return would be 6%.

They were pretty smart investors.
  #28  
Old 03-28-2020, 07:29 AM
VApeople VApeople is offline
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Quote:
Originally Posted by wilkinson View Post
Can you take that interest as a deduction if you take the standard deduction?
Of course not. You can only deduct interest if you itemize deductions.

Based on what I have read in other posts, even if you itemize deductions, I do not think the interest on the bond is deductible.
  #29  
Old 03-28-2020, 07:37 AM
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champion6 champion6 is offline
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Quote:
Originally Posted by Ginsanders View Post
Just a note, bonds are not allowed in Lake County. One of the many reasons we bought in the northern part of The Villages. No bond applicable.
This is no longer true!

The villages of Pine Hills and Pine Ridge are in Lake County and the homes have a bond.

The correct statement is that there is no bond on the homes in Lady Lake - the villages of Country Club Hills, Orange Blossom Gardens, Silver Lake, Del Mar, El Cortez, La Reynalda, La Zamora, Mira Mesa, Valle Verde.
  #30  
Old 03-28-2020, 07:39 AM
jonathanb jonathanb is offline
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Best thing to do is refinance your house and take enough equity out to just pay off the bond. Do you really think the district is going to lower the interest rate. Never happen.
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