[quote=ocrenter]ER, I think the 2% yearly MR increase is automatic. They essentially computed the bond payoff with the 2% yearly increase in mind. Just checked my street and it looks like the 2% MR increase is right on schedule.
This is another reason why the MR payoff made sense to me. When I paid it off last year, the yearly obligation was $5300. But after 10 years, that yearly obligation would be $6400, and after 15 years, that yearly obligation would then be $7000.
Meanwhile, with the AMT, the MR essentially feels like double taxation. I’m using post tax dollar to pay more tax, just doesn’t feel right.[/quote]
Yep. I didn’t know if it was “automatic” per se. I know the last 2 or 3 years wasn’t normal due to extremely low interest rate environment and refinancing. But we won’t be seeing another refinance of those that have been refinanced already.
It would be nice if CFD #4 gets it’s act together and refinances for it’s taxpayers. But I’m not going to hold my breath. But yes, like you in my models I included the assumption they will raise it 2% a year and won’t leave any money on the table.
ocrenter, where do you live? Do you live around our hood? Thanks for posting such great information. Actually it was some of your posts that were really really educational for me on this whole CFD pay off. That’s why these message boards are so valuable. Thanks.
