Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Would the 38K bond on new homes be a deal breaker? (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/would-38k-bond-new-homes-deal-breaker-305976/)

biker1 05-02-2020 04:24 PM
OK, fine, I see your point, and the semantics of this. I should have put quotes, as in "front loading". Again, the point is the majority of the interest is paid early on since the interest payment is compute on the outstanding balance at each payment period. The result is the interest is "front loaded" and not evenly spread across the loan and is not a front-loaded loan.

Quote:
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:

dewilson58 05-02-2020 04:37 PM
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:

biker1 05-02-2020 04:57 PM
OK, I see. I was not aware that there was such a critter. Thanks for clarifying.

Quote:
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:

dewilson58 05-02-2020 05:20 PM
Quote:
Originally Posted by biker1 (Post 1757685)
OK, I see. I was not aware that there was such a critter. Thanks for clarifying.



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.

biker1 05-02-2020 05:27 PM
We are good. I used the wrong terminology and thank you for bringing to my attention that there is a such a thing as a front-loaded loan. I did not work in the financial services industry so I was ignorant of such a critter.

Quote:
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.

rjm1cc 05-02-2020 06:29 PM
When comparing prices of a home you have to add the bond to the sales price and if it fits your budget and you think the price is reasonable you buy. But remember you are probably going to get an annual maintenance fee charge for the maintenance of the property the bond purchased.

Velvet 05-02-2020 08:05 PM
Yes, you add the bond to the “selling” price of the house to find it’s actual cost to buy. If the actual cost is okay with you, then you go ahead and buy.

boobear51751 05-02-2020 08:24 PM
May have financial security before the biggest drop in the markets history. Young folks won't be interested in this style of cocoon living. Just repeating what many of the 50's people in my extremely successful daughters circle. We are paying 25% more in taxes for this infrastructure. Why 30k?

Topspinmo 05-02-2020 08:35 PM
Quote:
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.
No, I don’t think so. From what I read Developers has commissioner’s in his pocket, we see how that goes in the next election. Agree, Sumter county had cheap taxes until the new development. But they still have caught up with Marion.

Hifred 05-02-2020 11:28 PM
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.

Challenger 05-03-2020 04:26 AM
Quote:
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.
They are publicly traded bonds. Call your broker. They are highly rated and sought after. Doubt that you will be able to find any immediately for sale . May have to get on an "order list"

jimbo2012 05-03-2020 05:05 AM
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.

ficoguy 05-03-2020 05:18 AM
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
But now with the $24,600 standard deduction, don't need to itemize
But the interest rate is below 4%

J1ceasar 05-03-2020 05:59 AM
Lot of green for sure
 
No golf courses so more grern spaces.
38k is crazy.
Samecas paying for a seat on a plane .
M fake pricing. .
No ethics in advertising as its not mentioned anywhere


go
Quote:
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

Challenger 05-03-2020 06:19 AM
Quote:
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:
The Direct Reduction (DR amortized loan) grew largely out of the The Federal Home Loan Act of 1932. Part of the recovery packages of the Roosevelt administration. From that time on, the principal home lenders( largely S&L') adopted the DR method . Prior to that date almost all loans were short term "Baloons" . There were a variety of methods used for Home Finance in the pre 32 years but all were less fair to the borrower than the DR method in use for the last 88 years.


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