Originally Posted by Rwirish (Post 1757168)

At $38,000, yes a deal breaker.

Originally Posted by Toymeister (Post 1757634)

Yes, there is misinformation here, including this.

Bonds in TV are paid ANNUALLY. Someone may Think they are paid monthly because they have a mortgage escrow prorated monthly as part of a home mortgage payment but, in fact the bond is paid ANNUALLY. It is collected with your property tax.

If you have no escrow this is very clear you get one, annual, bill for taxes and bond.

Hope this helps!

Originally Posted by Challenger (Post 1757626)

Neither a mortgage nor the bond has front loaded interest. Show where you found that info.

Originally Posted by Challenger (Post 1757638)

Agreed. There is a great deal of misinformation given especially in this thread.

The Bond is not a tax
Interest is not frontloaded
Bond payments are not tax deductible and those that encourage taking such action may well be also violating Federal Law.

There are more

Originally Posted by biker1 (Post 1757641)

Take a look at any amortization schedule. The majority of the interest is paid in the first half of the mortgage (and the bonds in The Villages). The interest is not evenly spread across all of the payments. That is what I mean by front loading. The amortization schedule for the bonds can be found on districtgov.org. You can pull up any number of amortization calculators on the internet that will show you the front loading of interest.

Originally Posted by Challenger (Post 1757626)

Neither a mortgage nor the bond has front loaded interest. Show where you found that info.

Originally Posted by dewilson58 (Post 1757644)

That's not front loading..................that is paying the appropriate amount of interest on the current outstanding balance. Wow!!



:ohdear:

Originally Posted by dewilson58 (Post 1757645)

He doesn't understand loan amortization. :clap2:

Originally Posted by biker1 (Post 1757652)

Please spare me the snarkyness. I understand amortization just fine and can derive the formula for you if you wish. The interest is computed on the outstanding balance at each payment period. This results in the majority of the interest being paid in the early half of the loan. This is what I call front loading. If you want to use some other term then fine. The concept is clear.

Originally Posted by dewilson58 (Post 1757657)

Bingo!!!!


TV bonds or a mortgage is not interest front end loaded. Interest is based on the monthly outstanding balance and the principal reduction is based on the overall fixed P&I payment.



Front end interest loaded loans are something different.


:ho:

Originally Posted by dewilson58 (Post 1757671)

I'm not old enough, but I think it was during President Roosevelt's time with "they" ended front-end loaded interest loans.



Prior to, installment loans (mortgages are a type of installment loan) could require 100% of the interest over the term of the loan had to be paid prior to any principal reduction. What a real screw. Government stepped in and stopped this practice by banks. Some credit houses continued the practice for a number of years, but I think the loopholes have been closed.



Maybe there is a historian on ToTV who knows if it was during the Roosevelt era. :shrug:

Originally Posted by biker1 (Post 1757685)

OK, I see. I was not aware that there was such a critter. Thanks for clarifying.

Originally Posted by dewilson58 (Post 1757698)

Let me publicly apologize to you for saying you did not understand amortization.


To be honest, I thought you were stirring up the pot and getting the natives fired up.


I was wrong to think that of you and wrong to say it.


Ride-on Biker, Ride-on.

Originally Posted by Goldwingnut (Post 1757143)

You need to stop reading that other website.

The 25% increase had nothing to do with the developer, it was the county administration that has been mismanaging the tax money, trying to make themselves look good by lowering taxes the last 14 years so they could brag about what a good job they were doing. Instead they should have been holding the tax rate constant putting away the money for the growth and increased maintenance costs.

The developer/bonds pay for all the new roads and infrastructure for a new development. The impact fees are supposed to pay for upgrading existing county infrastructure (CR468 & CR501) to support the developments that the county approves. One has to ask what they are doing with the money.

The developer doesn't care what the impact fee is, it's just another line item in building the house and they will pass it on to the buyer, just like all taxes are. Do you really think an extra $1000 will stop the sale of any new home in The Villages, I think not.

Originally Posted by Hifred (Post 1757806)

I have called the Villages government offices and have asked how I can buy these bonds as an investment. No one knows. I would love to invest in The Villages Bonds if they are offered to the public because you know they always get paid. If anyone knows how to purchase these bonds let me know.

Originally Posted by Goldwingnut (Post 1757128)

DeLuna is in CDD12 and Chitty Chatty is in CDD13. The bonds are not specific to the CDD but to the subdivision (Unit #).

Adjusted for inflation the bonds have not gone up significantly over the last 20 years. Also consider in the newer areas, CDDs 12 & 13, there is a lot more green/open space than anywhere else in The Villages and the overall population density is lower. This results in longer road, more pipes, and more infrastructure in general that has to be paid for. You will pay for it one way or another, as a bond or just rolled into the price of the house the way other developers do it.

This video explains the bonds here in The Villages:

The Villages 5-30-19 Construction update and Bond information - YouTube

Originally Posted by dewilson58 (Post 1757671)

I'm not old enough, but I think it was during President Roosevelt's time with "they" ended front-end loaded interest loans.



Prior to, installment loans (mortgages are a type of installment loan) could require 100% of the interest over the term of the loan had to be paid prior to any principal reduction. What a real screw. Government stepped in and stopped this practice by banks. Some credit houses continued the practice for a number of years, but I think the loopholes have been closed.



Maybe there is a historian on ToTV who knows if it was during the Roosevelt era. :shrug:

Originally Posted by Goldwingnut (Post 1757128)

DeLuna is in CDD12 and Chitty Chatty is in CDD13. The bonds are not specific to the CDD but to the subdivision (Unit #).

Adjusted for inflation the bonds have not gone up significantly over the last 20 years. Also consider in the newer areas, CDDs 12 & 13, there is a lot more green/open space than anywhere else in The Villages and the overall population density is lower. This results in longer road, more pipes, and more infrastructure in general that has to be paid for. You will pay for it one way or another, as a bond or just rolled into the price of the house the way other developers do it.

This video explains the bonds here in The Villages:

The Villages 5-30-19 Construction update and Bond information - YouTube

Originally Posted by JimJohnson (Post 1757154)

We are in home number two and paid the bond in full for both. The bond is part of the home value to us. Paying it like a second mortgage is foolish to me. Yes, there is interest on the bond if paid over time that is higher than mortgage interest. If you can’t pay the bond off, at least add it to your home payment and pay less at the end of the note.
The Rep’s will tell you that no one pays the bond up front, but this is false. At closing on our first home, the buyer confessed to us that our home was a little high, but that our bond was paid so it became a better purchase.

Today’s bonds are approximately:
Patio Villa $19,000
Courtyard $25,000
Designer $35,000

You can find the occasional Cottage home in a Patio Villa neighborhood and pay the $19,000.

Originally Posted by jimbo2012 (Post 1757816)

My complaint is not price (over 30 years not that much a month) there's a lot of costs in the infrastructure, it's the fact you can't deduct the interest.

Originally Posted by ficoguy (Post 1757823)

I used to deduct the bond on my taxes since it sows up as an "ad valurem" item on my tax bill....its a grey area

Originally Posted by Boilerman (Post 1758003)

This is not a grey area. The bond interest is not a tax and is not deductible.

Originally Posted by Travelhunter (Post 1757917)

My sales rep told me not to pay the bond. He said so many people move after a few years and they do not recover the bond pay off in the sale price
I wonder if that’s true

Originally Posted by Travelhunter (Post 1757917)

My sales rep told me not to pay the bond. He said so many people move after a few years and they do not recover the bond pay off in the sale price
I wonder if that’s true

Originally Posted by Challenger (Post 1757348)

No one buying or selling a house - using a competent real estate sales person, would ever assume a bond. If they do, the sales person is guilty of malfeasance.