Villages Bond Refinancing

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  #31  
Old 03-28-2020, 07:44 AM
jonathanb jonathanb is offline
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Sellers think they recovered the bond but it’s only because their house value went up so much. The market value of your home is not affected by the bond. They wouldn’t have gotten any more even if the bond was paid. Although I have seen sellers get crazy amounts from buyers who were cash and not really knowledgeable. This usually happens with a FSBO.
  #32  
Old 03-28-2020, 08:14 AM
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When buying my home a one line blurb in the sales sheet said bond paid. Not ever hearing of a house bond I thought nothing of it. So there was no value added when negotiating. Looking back I see that it was a good thing, but one should not assume it's up there with a golf car garage
  #33  
Old 03-28-2020, 08:24 AM
Nordy Nordy is offline
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Very well put. Very smart person.
  #34  
Old 03-28-2020, 08:40 AM
wiltma wiltma is offline
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Default Home equity line of credit

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 .
Not deductible
  #35  
Old 03-28-2020, 08:49 AM
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Default Bond $$ and infrastructure

These are two separate things. Every first owner pays an additional amount at closing that helps pay sewer pipes, electrical systems, roads, etc. This amount, about $10000 in 2004 on a courtyard villa. Second owners etc do not pay this
  #36  
Old 03-28-2020, 09:07 AM
limegreensaab limegreensaab 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.
Ummm. We live in lake county and have a bond ...
  #37  
Old 03-28-2020, 09:56 AM
Moonrunner Moonrunner is offline
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And paying off your bond is not a good option because they tack on the interest for the life of the bond. Sounds like gouging on a major scale.
  #38  
Old 03-28-2020, 10:35 AM
davem4616 davem4616 is offline
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interesting point...we're in a new normal now...perhaps the 10 year cycle is no longer appropriate

given that you obviously have energy around this I invite you to champion getting a serious number of Village signatures and presenting it to the people that actually have the power to take a look at a potential savings opportunity by rewriting the bond rates earlier
  #39  
Old 03-28-2020, 10:42 AM
davem4616 davem4616 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.

Fake news

who ever told you that bonds are not allowed in Lake County didn't have the correct information.

We live in the Village of Pine Hills (which is in Lake County) we have a bond on the property, as does a cousin who lives one street over and another cousin that lives in the villages of Pine Ridge (also in Lake County).
  #40  
Old 03-28-2020, 10:44 AM
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So let's try to deal with facts here, I did some digging on the interest rates currently being paid on the bonds. These are shown below.

There are 3 bond issues with interest rates of 6% or higher, their issue dates are 2010 and 2011, the 2010 bonds are only this year at a point of being able to be reissued, the 2011 will be eligible next year. All the bonds are issued at market rates at the time of issue, trying to compare these rates to current mortgage rates is an apples-oranges comparison, they are completely different products with completely different basis. These bonds have requirements, conditions, and regulations associated with them that protect both the investors and those who are paying off the bonds, changing these is highly unlikely, no matter how many people decides to stand in a corner and scream and pout like a 3 year old.

The 2010 CDD8, 2016 CDD4, and CDD9-12 bonds are all original issue. All of those before these in CDD3 thorough 8 have been reissued and resident bond assessments have been reduced accordingly.

Will the 2010 bonds be reissued? Hard to say with the current market. What I can tell you is that I have worked with the Assistant District Manager Kenny Blocker, who is responsible for these efforts since he came on-board a 3 years ago and he is very aggressive at pursuing these the bond issues to get the residents a better rate. If it can be done, he can and will do it. Many thousand have already been saved by residents through the bond reissues over the last decade.

The developer gets ZERO of this, the District governments get ZERO of this, the residents gain everything from these reissues.

Before jumping in with uneducated comments one should learn the FACTS.

CDD Bond Interest Rate
1- No bonds- Paid Off
2- No bonds- Paid Off
3- 2013- 2.748%
4- 2010- 4.817%
4- 2012- 4.810%
4- 2016- 3.35%
5- 2013A- 4.73%
5- 2013B- 4.73%
6- 2013- 4.94%
6- 2017- 4.25%
7- 2015- 4.25%
8- 2018- 3.95%
8- 2010- 6.125%
8- 2010- 6.125%
9- 2011- 6.963%
9- 2012- 5.507%
9- 2016- 5.15%
10- 2012- 5.153%
10- 2014- 5.992%
11- 2014- 4.464%
12- 2016- 3.90%
12- 2018- 4.33%
12- 2019- 6.607%
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  #41  
Old 03-28-2020, 11:27 AM
bilcon bilcon is offline
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When I sold my first house, I did not have to pay off the bond. The new owner had to take over the payment of the balance of the bond.
  #42  
Old 03-28-2020, 11:29 AM
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Quote:
Originally Posted by jonathanb View Post
Sellers think they recovered the bond but it’s only because their house value went up so much. The market value of your home is not affected by the bond. They wouldn’t have gotten any more even if the bond was paid. Although I have seen sellers get crazy amounts from buyers who were cash and not really knowledgeable. This usually happens with a FSBO.
Wrong. Buyers are quite knowledgeable and a well maintained home here will command the additional recovery of the bond being paid off. Savvy FSBO individuals are extremely aware of market values here. Plus, one needs to consider all of the interest not paid out of pocket from the time of payoff.
  #43  
Old 03-28-2020, 11:33 AM
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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.
It was no problem at all. But then again, our bond was under $20,000.
  #44  
Old 03-28-2020, 07:11 PM
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Quote:
Originally Posted by Moonrunner View Post
And paying off your bond is not a good option because they tack on the interest for the life of the bond. Sounds like gouging on a major scale.
Not true, the only reason you need to call for the "payoff amount" is that the interest is calculated to the specific date of the payoff, NOT 20 years or more in the future. We paid ours off after 5 years, it was just slightly different from the previously supplied escrow statement for that month. IT DID NOT have 20 years of additional interest.
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  #45  
Old 03-28-2020, 07:35 PM
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Quote:
Originally Posted by Goldwingnut View Post
So let's try to deal with facts here, I did some digging on the interest rates currently being paid on the bonds. These are shown below.

There are 3 bond issues with interest rates of 6% or higher, their issue dates are 2010 and 2011, the 2010 bonds are only this year at a point of being able to be reissued, the 2011 will be eligible next year. All the bonds are issued at market rates at the time of issue, trying to compare these rates to current mortgage rates is an apples-oranges comparison, they are completely different products with completely different basis. These bonds have requirements, conditions, and regulations associated with them that protect both the investors and those who are paying off the bonds, changing these is highly unlikely, no matter how many people decides to stand in a corner and scream and pout like a 3 year old.

The 2010 CDD8, 2016 CDD4, and CDD9-12 bonds are all original issue. All of those before these in CDD3 thorough 8 have been reissued and resident bond assessments have been reduced accordingly.

Will the 2010 bonds be reissued? Hard to say with the current market. What I can tell you is that I have worked with the Assistant District Manager Kenny Blocker, who is responsible for these efforts since he came on-board a 3 years ago and he is very aggressive at pursuing these the bond issues to get the residents a better rate. If it can be done, he can and will do it. Many thousand have already been saved by residents through the bond reissues over the last decade.

The developer gets ZERO of this, the District governments get ZERO of this, the residents gain everything from these reissues.

Before jumping in with uneducated comments one should learn the FACTS.

CDD Bond Interest Rate
1- No bonds- Paid Off
2- No bonds- Paid Off
3- 2013- 2.748%
4- 2010- 4.817%
4- 2012- 4.810%
4- 2016- 3.35%
5- 2013A- 4.73%
5- 2013B- 4.73%
6- 2013- 4.94%
6- 2017- 4.25%
7- 2015- 4.25%
8- 2018- 3.95%
8- 2010- 6.125%
8- 2010- 6.125%
9- 2011- 6.963%
9- 2012- 5.507%
9- 2016- 5.15%
10- 2012- 5.153%
10- 2014- 5.992%
11- 2014- 4.464%
12- 2016- 3.90%
12- 2018- 4.33%
12- 2019- 6.607%
Quote:
Originally Posted by villagetinker View Post
Not true, the only reason you need to call for the "payoff amount" is that the interest is calculated to the specific date of the payoff, NOT 20 years or more in the future. We paid ours off after 5 years, it was just slightly different from the previously supplied escrow statement for that month. IT DID NOT have 20 years of additional interest.
Boy you guys with the "FACTS" really take the fun out of BITCHING!
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