[bpascani]

many pre owned homes still have bonds, so always ask. It isn't always obvious

[Aces4]

Originally Posted by Robbie0723

Exactly, there's no evidence a bond effects sale price when looking at the county tax records. Some buyers may walk but there are others right behind them.

The only problem with your calculation is the loss the seller has already incurred from all the interest they paid to the developers.

[Challenger]

Originally Posted by biker1

The correct thing to do. The bond is amortized just like a mortgage, which means the interest is front loaded. You have already paid 80-90% of the interest. No point in paying off the remaining balance at this point.

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

[Toymeister]

Originally Posted by villagetinker

It appears there is some misinformation here. The bond is normally paid MONTHLY at the agreed upon interest rate over a period of typically 25 years

Hope this helps.

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!

[valuemkt]

More fear mongering and misinformation. Monarch grove District 12 bond runs $30,500. One way or another someone has to pay for infrastructure. It's a development cost that will always be passed on somewhere and somehow. Lot cost, added to taxes, or separate bond. Compared to many other areas of the southeast, I like the peace of mind that comes with well thought out drainage and flood mitigation protocols. Ever wonder why those sprinklers are inundating the golf courses during the rainy season ? It comes from forethought on how to keep your house dry .. Current bond interest rate 4.3%.. Compare your total tax bill to where you moved or are thinking of moving from. Then make your decision . No one is forcing you in .. or making you stay. tens of thousands of homes have been sold and resold with the bond ..

[Challenger]

Originally Posted by Rwirish

At $38,000, yes a deal breaker.

Originally Posted by Toymeister

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!

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

[biker1]

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.

"Front-loading means you're paying more interest in the early years of a loan. It works due to simple math: since interest is calculated on the outstanding balance, the interest charge will be high until you pay down the principal."

How Does a Front-Loaded Mortgage Work? - Budgeting Money


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

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

[biker1]

Wrong. The bond interest is front loaded, as are mortgages.

Originally Posted by Challenger

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

[dewilson58]

Originally Posted by biker1

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.

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

[dewilson58]

Originally Posted by Challenger

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

He doesn't understand loan amortization.

[biker1]

Wow yourself.

"Front-loading means you're paying more interest in the early years of a loan. It works due to simple math: since interest is calculated on the outstanding balance, the interest charge will be high until you pay down the principal."

How Does a Front-Loaded Mortgage Work? - Budgeting Money

Originally Posted by dewilson58

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

[boobear51751]

No it is not worth it. We are on our second house and this designer came with a 21k bond. I am sure they will have to lower the price of new homes to be competitive in the retirement community business.

[biker1]

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

He doesn't understand loan amortization.

[dewilson58]

Originally Posted by biker1

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.

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.

[manaboutown]

This article has an easily understood analysis of "front loaded" and "back loaded" interest calculations. What is Front-Loaded Interest? – Ultimate Online Bargains