Hi Bradley, sorry that I did not get back sooner. This comment slipped past me. The interest rate does not fluctuate with the bond on your home, that is fixed. However, the interest rate when the bond is issued changes with the prime interest rate. So, the interest rate on the bonds issued for new homes right now should be higher since the prime rate is higher. The bond is attached to the house, so if you you buy a resale home, the interest rate on the remaining bond will be the interest rate when the bond was initially issued.
Dave, if you were to purchase a new construction home and close in September, how does the Bond Payment factor in? Would you be paying a bond payment in the next tax bill?
I thought I had replied to this, but I don't see my reply here so, here it goes. Taxes in Florida are paid in arears. Meaning, the tax bill you get at the end of this year is for 2022. The bond is paid in advance. Meaning that on the same tax bill for the end of this year will have the full bond payment for next year.
So is the bond simply a replacement for the typical property taxes? Are property taxes still required, and if they are are they assessed at the same rate as a home in another Florida city? It sounds like this bond covers typically infrastructure that would normally be paid through property and sales taxes, so why is this designated separately/incrementally?
There are standard county property taxes here. Standard property taxes usually do no pay for new infrasture because it is a finite spend. Take a loan out, build somethine, and pay the loan off. Property taxes pay for goverment services like running of schools, police, fire, and ONGOING maintenance of infastructure, like road repair. A bond in general is a loan taken out by a government entity to build something, this bond payment is added to your tax bill. You probably have paid bonds before. A new school needs to be built or new fire station in your community. Once the build is paid for the bond payment stops. Same with the Villages, it is a city that is building new roads, golf cart paths, water treatment plants, water towers, bridges fire stations..etc. They take out a loan, and assign each home a portion of the bond to pay off. Bond stays with the home, not the owner. The bond gets paid off over time at which time your tax bill goest down. Other Florida cities are usually more established and might add a new school, or fire station over time. So, a bond is issued, but it has a smaller impact to your tax bill because the bond is smaller in comparison to building brand new infrasture and it is usually spread across the entire tax base not just newer homes. I hope this helps.
Once the bond is paid off, its gone. Bond is considered an non ad valorem tax. Meaning its not based on the price of the house, it is a flat fee that is not reassessed. So, that is something you don't need to worry about.
I can give you the number to the tax collectors off if you let me know which county your home is in. Chances are its Sumter County, (352) 689-4540. Or you can go in person, 7375 Powell Road Wildwood , FL 34785
Its a tax and shows up on your tax bill. It is attached to the house, and is paid off over time. If you dont like the bond, you can look at older homes where it is either completely or almost paid off. The further north you go the older the home and more the bond is likely to be almost paid off. Bond principles up north started in the $20k range with annual tax of about $900 to where they are building new where they are $45k-$50k and annual payments $3200 range.
Yes you can. You can pay it off anytime. If you are not 100% sure this is your forever home, and the interest rate on the bond is low, then consider making annual payments. But if you are know this will be the forever home you might as well pay it off. Especially with the current NEW homes, the interest rates are about 6%, the annual payments about $3000, and with a beginning balance in the mid $40ks you will end up paying close to $100k over the life of the bond.
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Thanks Dave, just looked our schedule up.
You must be really bored :) When are you headed back to The Villages?
Great information. Does the interest rate fluctuate
Hi Bradley, sorry that I did not get back sooner. This comment slipped past me. The interest rate does not fluctuate with the bond on your home, that is fixed. However, the interest rate when the bond is issued changes with the prime interest rate. So, the interest rate on the bonds issued for new homes right now should be higher since the prime rate is higher. The bond is attached to the house, so if you you buy a resale home, the interest rate on the remaining bond will be the interest rate when the bond was initially issued.
Dave, if you were to purchase a new construction home and close in September, how does the Bond Payment factor in? Would you be paying a bond payment in the next tax bill?
I thought I had replied to this, but I don't see my reply here so, here it goes. Taxes in Florida are paid in arears. Meaning, the tax bill you get at the end of this year is for 2022. The bond is paid in advance. Meaning that on the same tax bill for the end of this year will have the full bond payment for next year.
So is the bond simply a replacement for the typical property taxes? Are property taxes still required, and if they are are they assessed at the same rate as a home in another Florida city? It sounds like this bond covers typically infrastructure that would normally be paid through property and sales taxes, so why is this designated separately/incrementally?
There are standard county property taxes here. Standard property taxes usually do no pay for new infrasture because it is a finite spend. Take a loan out, build somethine, and pay the loan off. Property taxes pay for goverment services like running of schools, police, fire, and ONGOING maintenance of infastructure, like road repair. A bond in general is a loan taken out by a government entity to build something, this bond payment is added to your tax bill. You probably have paid bonds before. A new school needs to be built or new fire station in your community. Once the build is paid for the bond payment stops. Same with the Villages, it is a city that is building new roads, golf cart paths, water treatment plants, water towers, bridges fire stations..etc. They take out a loan, and assign each home a portion of the bond to pay off. Bond stays with the home, not the owner. The bond gets paid off over time at which time your tax bill goest down. Other Florida cities are usually more established and might add a new school, or fire station over time. So, a bond is issued, but it has a smaller impact to your tax bill because the bond is smaller in comparison to building brand new infrasture and it is usually spread across the entire tax base not just newer homes. I hope this helps.
I was wondering if there have been or are there expected to be bond reassessment in some of the more established areas in TV?
Once the bond is paid off, its gone. Bond is considered an non ad valorem tax. Meaning its not based on the price of the house, it is a flat fee that is not reassessed. So, that is something you don't need to worry about.
@@DavidMonty Thank you
Dave,
Who do I contact to pay additional money on my bond to pay it off sooner?
I can give you the number to the tax collectors off if you let me know which county your home is in. Chances are its Sumter County, (352) 689-4540. Or you can go in person,
7375 Powell Road
Wildwood , FL 34785
Is the bond payment on top of the house payment?
Its a tax and shows up on your tax bill. It is attached to the house, and is paid off over time. If you dont like the bond, you can look at older homes where it is either completely or almost paid off. The further north you go the older the home and more the bond is likely to be almost paid off. Bond principles up north started in the $20k range with annual tax of about $900 to where they are building new where they are $45k-$50k and annual payments $3200 range.
Can you just pay it off in full at closing?
Yes you can. You can pay it off anytime. If you are not 100% sure this is your forever home, and the interest rate on the bond is low, then consider making annual payments. But if you are know this will be the forever home you might as well pay it off. Especially with the current NEW homes, the interest rates are about 6%, the annual payments about $3000, and with a beginning balance in the mid $40ks you will end up paying close to $100k over the life of the bond.
Your "flying around the screen" with your mouse arrow makes me dizzy.
Sorry about that.