So, your point is??
I was going to post all of the procedures but decided anyone could go and read the total posting.
Why the selection you posted?
Do I hear an axe being ground?

Point
 

....

Wouldn't it make more sense to do this on a line of credit or a 10 year loan?
At today's interest (based on 4%) rates, monthly payments would be $135 and the total of principal and interest for the 10 years is $16,400, much less than half the mortgage route. Total interest over the term of the loan would be $2,900 instead of $20,000.

My bank says they could lend at 5% and with the same payments, the loan would be amortized in 16.5 years and the monthly payment go entirely on principal and interest with no yearly fee of $67.00. Even with a rate of 6.93% with same monthly payemts (yearly fee included), I would amortise in 21.5 years.

We are planning to buy a 2/2 Furnished Patio Villa with closing costs of about $150,000.

$150,000 is our limit for a cash deal, so we are going to take on a
1 year term loan for the cost of the bond. I spoke to my Bank, RBC Canada and they can do this, but RBC USA (PNC) say I would need to take out a mortgage for one year on this amount (can't figure out why a mortgage for one year) and it would leave us with a $350 charge for interest for one year.
With a personal loan at 4% I would end up paying $290 interest which is close.

My concern would be, does The Villages Development insist that you use their finance for paying the Bond? And I am assuming I can pay the bond "up-front"

From a mathematical viewpoint, there is no question that it makes sense to pay off the bond as soon as possible. You can finance the payoff any way you want. The only potential drawback is that when you sell your house, you may run into a potential buyer who is stupid, making an ill-informed decision, or has been deceived by the Developer's lack of disclosure of the bond amount in his ads for new houses. That potential buyer may make an incorrect comparison when looking at the advertised price of your house and the advertised price of competing houses that carry the bond. How often that happens, I have no idea.

It should be noted that this procedure has been used for the last 20 years, ever since bonds were introduced in TV as a way of paying for the infrastructure.

It's a hard to believe that only 880 owners elected to pay off their bonds in all that time. What happened to the interest collected in error since 1992?

I believe it has to do with WHEN the payoff was made during the year.


From Bond Interest Refund Procedures :

"For those property owners who paid off their bonds between the annual July assessment roll cutoff date through September 16th, they were entitled to a full refund of the final annual interest installment. For those property owners who paid off their bonds from September 17th through the following March 16th, they were entitled to a 50% refund of the final annual installment of interest. For those that paid off from March 17th through the following July cutoff date, they were entitled to no interest refund."

Bill :)

Bonds on new houses
 

We are coming up tomorrow to look at a 2010 patio villa w a $11,000 bond on it its in Sumter Landing area....any thoughts? Thanx Lynn:wave:

If you like it................buy it!

Bond
 

How much approx will it cost per yr I am just trying I figure in amount into budget

Bond Lookup
 

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"Cost" for:

The bond? See previous post from KeepingItReal

A mortgage? There are a zillion places you can check re: mortgage rates and amortization tables for monthly costs

A on-going cost of ownership? Refer to a PM from a while back that I'd sent you on this. Let me know if you still need that info.

Good luck!

Bill :)