Assuming you take out a HELOC at 4.5%, to keep the monthly payment the same, it would take 13 years to payoff. Essentially at $480/month. If you just pay $100 more per month, you can pay it off in 10 years.
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Hmm.. Aren’t HELOCs these days limited to 80% CLTV? If so, a new/recent buyer can not really use it to buy a house and pay-off Mello-Roos without putting down >20% at purchase. If that is the case then won’t he be better off just putting 20% down and using the rest to pay off Mello-Roos? (instead of putting 20%+50K down and then taking out a HELOC to pay-off Mello-Roos)..
On the same topic, there are slightly older areas in the city (e.g. Scripps Ranch) where houses built in the mid-90s have ~2K/year Mello-Roos which will expire in another ~5years. Once the (majority of ) Mello-Roos for the whole area expires in 2017, might they see a bump in property values? I am guessing that there is a class of buyers for whom any Mello-Roos is a turn-off (there are some on this board. LOL!!!) Suddenly in 2017, this area becomes desirable for them.
