Talk of The Villages Florida - When to pay off home bond

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Debt keeps poor people poor and makes rich people richer. Avoid it like the plague. If you owe any money on your residence, you don't own it, you're renting it from your lending institution < ( another name for landlord)

Quote:

Originally Posted by Chatbrat (Post 1257331)

Debt keeps poor people poor and makes rich people richer. Avoid it like the plague.

Some of the the largest corporations in the world disagree with you.

Very few of them don't have some type of debt.

They simply made the calculation that their debt service is less, than what they will benefit from when using that same money elsewhere.

If you're paying off a bond that is at say 5%, but you can make your money work in other places for you at 7%, then you are losing out....and that really isn't being very fiscally astute. :shrug:

Quote:

Originally Posted by ColdNoMore2 (Post 1257336)

I agree with the Corporate America statements........leveraging debt works.

After adding in the Admin Fee, the effective rate on my bond was in excess of 7%. My investment return would have to be in excess of 10% (less taxes), to breakeven. So a guaranteed return of 10% (by paying off the debt), I decided to pay it off.

Every situation is different, every logic is different. Good luck to all on the chosen path.

Corps make $$ based on the products and services , not money --I've invested in a lot of venture investments of small companies before they went public--

Look at your own Amortization Statement to see what the bond is really costing you over the 30 years. There is also an "administrative fee" tacked on annually.

Don't worry about saving $$, worry about making $$---

Quote:

Originally Posted by ColdNoMore2 (Post 1257336)

Where can you get 7%??????

Talking about debt in our age group is a different discussion.
You don't want to take "risks" now that you might have
taken in your younger years.
IMHO at this age I don't want ANY debt or to take risks.

:wave: If you are thinking about paying your bond off.... better move quick. The cut off so it will not be on the next tax bill is July 22nd. Only have 2 days counting today.

Gabelli Utility Trust--pays 8.77% .05/monthly--if you reinvest your dividends, you get shares @5% discount from mkt

Quote:

Originally Posted by Chatbrat (Post 1257507)

Gabelli Utility Trust--pays 8.77% .05/monthly--if you reinvest your dividends, you get shares @5% discount from mkt

What is mkt ?

Quote:

Originally Posted by Chatbrat (Post 1257526)

market

[emoji1303]

Also leasing it from the Government

Quote:

Originally Posted by Chatbrat (Post 1257331)

What you say is absolutely correct, however, you are also "leasing" your property from the Government. You pay your lease in the form of taxes each year. So in reality you never really own your home free and clear so to speak.

Quote:

Originally Posted by Bogie Shooter (Post 1253988)

The infrastructure of the District in which you live was built with tax-exempt bonds. The bonds are repaid with monies collected in the annual tax bill sent out by the Sumter or Marion County Tax Collector's office and appear in the Non-Ad Valorem section of the tax bill as "Bond Debt Assessment".

You may pay off your bond assessment in full at any time. You are not required to pay off this assessment in advance.
�If you choose not to pay off the bond debt before the �July cut off date�, the annual assessment will continue to appear on the tax bill until the debt is paid off.
�If you choose to pay off your remaining bond assessment before the July cut off date, the yearly installments will be eliminated from your annual tax bill.
�If you pay off your bond between the July cut off date and September 16th you will owe no additional interest; however, you will still have one more annual bond assessment on your tax bill.
�If you pay off your bond between September 17th and March 16th you will owe six months additional interest.
�If you pay off your bond between March 17th and the following July cut off date, the full annual assessment of interest is owed.

Contact the Bond Unit at (352) 751-3900 for your Bond Payoff amount.

The July cut off date is July 22, 2016 to eliminate the bond assessment on your 2016 Tax Bill.

Thanks Bogie, very informative post. Also, you can use "search" on TOTV as there are several threads and posts regarding paying off your bond.