[ahewitson]

So we just received our quote to pay off the Mello Roos for the Stonebridge Community and I’m totally floored. If we would have paid it off in 2011 when we bought it was about $51,000-$54,000 depending on when we did it in the year. It’s now up to $68,000 (and change) to pay it off. What’s more depressing is not only did it increase by $17,000 from when we could have paid it off but we’ve already paid about $40,000 over the last 7 years. Ugggg So when we stroke the check for $68K now it will be over $108,000 that we’ve paid into the fund. Neither of our 2 kids attend school in the Poway School District either so we’re not even reaping the benefits/rewards. We just re-fi’d our home about 2 years ago to a 15 year fixed @ 3% so at least we’ll have the house paid off sooner than originally planned and don’t have any plans to move so I guess it was a sound investment to make the decision now to pay it off. Just a very painful choice to wait instead of paying it off 7 years ago.

[ahewitson]

[quote=bearishgurl][quote=ahewitson]What happens if I would like to pay off the bond in full? Let’s say I wanted to buy a home in 4S and found out that my portion of the 2 bonds in that area was $60,000 for easy numbers. If I were to write a check and pay it off in full, would I be exempt from the timelines and the potential bond expiration in 2040?[/quote]

Why would you want to do that, ahewitson? Do you plan on keeping the property 29 years (until 2040)? Any potential buyer you later have for your house will EXPECT to pay these bonds for a property located in your area. You will not pay any more for the bonds by paying them twice per year on your property tax bills than if you pay them all up front. Nor do I think it would increase your resale value if you paid them off.[/quote]

Here’s a simple calculation for you BG. Let’s say I was just going to stay in the house for half that time (15 years instead of 29 years). The starting Mello Roos is $5,000 with an annual increase of 2% each year. The schedule would look like this:

Years Mello Roos Running Total Mo. Cost
1st $5,000.00 $416.67
2nd $5,100.00 $10,100.00 $425.00
3rd $5,202.00 $15,302.00 $433.50
4th $5,306.04 $20,608.04 $442.17
5th $5,412.16 $26,020.20 $451.01
6th $5,520.40 $31,540.60 $460.03
7th $5,630.81 $37,171.42 $469.23
8th $5,743.43 $42,914.85 $478.62
9th $5,858.30 $48,773.14 $488.19
10th $5,975.46 $54,748.60 $497.96
11th $6,094.97 $60,843.58 $507.91
12th $6,216.87 $67,060.45 $518.07
13th $6,341.21 $73,401.66 $528.43
14th $6,468.03 $79,869.69 $539.00
15th $6,597.39 $86,467.08 $549.78

By these calculations, You’d only need to own this home for 11 years to break even on your original investment of the mello roos payoff. Additionally, even if you kept this property as a rental investment, you’d end up paying $114,202 after 20 years and $185,256 in 29 years. Who’s to say that you’d keep the home for 30 years as a residence or rental or at all but 300% of the original $60,000 doesn’t sound like too much fun to me.

Now, let’s talk about selling your home. If you were trying to sell your $700,000 house and a prospective buyer was calculating their total monthly mortgage payment on a 20% down conforming 30 year fixed loan with a principal balance of $560,000. Their monthly payment will be $3,005 but if they were to budget monthly for the Mello Roos it would be $3,513 ($3,005 P&I + $508 MR). If a buyer was trying to determine whether they could afford $3,005/mo vs. $3,513/mo do you think my house without MR would be a more attractive purchase to them? Or 5 years later where that same payment would be $3,565 and so on. That $3,500ish payment would be as if your principal loan amount was $650,000 ($90,000 more) because of the MR amount.

I’d be interested to hear a compelling argument NOT to pay off your MR.

[ahewitson]

[quote=bearishgurl][quote=ahewitson]What happens if I would like to pay off the bond in full? Let’s say I wanted to buy a home in 4S and found out that my portion of the 2 bonds in that area was $60,000 for easy numbers. If I were to write a check and pay it off in full, would I be exempt from the timelines and the potential bond expiration in 2040?[/quote]

Why would you want to do that, ahewitson? Do you plan on keeping the property 29 years (until 2040)? Any potential buyer you later have for your house will EXPECT to pay these bonds for a property located in your area. You will not pay any more for the bonds by paying them twice per year on your property tax bills than if you pay them all up front. Nor do I think it would increase your resale value if you paid them off.[/quote]

Here’s a simple calculation for you BG. Let’s say I was just going to stay in the house for half that time (15 years instead of 29 years). The starting Mello Roos is $5,000 with an annual increase of 2% each year. The schedule would look like this:

Years Mello Roos Running Total Mo. Cost
1st $5,000.00 $416.67
2nd $5,100.00 $10,100.00 $425.00
3rd $5,202.00 $15,302.00 $433.50
4th $5,306.04 $20,608.04 $442.17
5th $5,412.16 $26,020.20 $451.01
6th $5,520.40 $31,540.60 $460.03
7th $5,630.81 $37,171.42 $469.23
8th $5,743.43 $42,914.85 $478.62
9th $5,858.30 $48,773.14 $488.19
10th $5,975.46 $54,748.60 $497.96
11th $6,094.97 $60,843.58 $507.91
12th $6,216.87 $67,060.45 $518.07
13th $6,341.21 $73,401.66 $528.43
14th $6,468.03 $79,869.69 $539.00
15th $6,597.39 $86,467.08 $549.78

By these calculations, You’d only need to own this home for 11 years to break even on your original investment of the mello roos payoff. Additionally, even if you kept this property as a rental investment, you’d end up paying $114,202 after 20 years and $185,256 in 29 years. Who’s to say that you’d keep the home for 30 years as a residence or rental or at all but 300% of the original $60,000 doesn’t sound like too much fun to me.

Now, let’s talk about selling your home. If you were trying to sell your $700,000 house and a prospective buyer was calculating their total monthly mortgage payment on a 20% down conforming 30 year fixed loan with a principal balance of $560,000. Their monthly payment will be $3,005 but if they were to budget monthly for the Mello Roos it would be $3,513 ($3,005 P&I + $508 MR). If a buyer was trying to determine whether they could afford $3,005/mo vs. $3,513/mo do you think my house without MR would be a more attractive purchase to them? Or 5 years later where that same payment would be $3,565 and so on. That $3,500ish payment would be as if your principal loan amount was $650,000 ($90,000 more) because of the MR amount.

I’d be interested to hear a compelling argument NOT to pay off your MR.

[ahewitson]

[quote=bearishgurl][quote=ahewitson]What happens if I would like to pay off the bond in full? Let’s say I wanted to buy a home in 4S and found out that my portion of the 2 bonds in that area was $60,000 for easy numbers. If I were to write a check and pay it off in full, would I be exempt from the timelines and the potential bond expiration in 2040?[/quote]

Why would you want to do that, ahewitson? Do you plan on keeping the property 29 years (until 2040)? Any potential buyer you later have for your house will EXPECT to pay these bonds for a property located in your area. You will not pay any more for the bonds by paying them twice per year on your property tax bills than if you pay them all up front. Nor do I think it would increase your resale value if you paid them off.[/quote]

Here’s a simple calculation for you BG. Let’s say I was just going to stay in the house for half that time (15 years instead of 29 years). The starting Mello Roos is $5,000 with an annual increase of 2% each year. The schedule would look like this:

Years Mello Roos Running Total Mo. Cost
1st $5,000.00 $416.67
2nd $5,100.00 $10,100.00 $425.00
3rd $5,202.00 $15,302.00 $433.50
4th $5,306.04 $20,608.04 $442.17
5th $5,412.16 $26,020.20 $451.01
6th $5,520.40 $31,540.60 $460.03
7th $5,630.81 $37,171.42 $469.23
8th $5,743.43 $42,914.85 $478.62
9th $5,858.30 $48,773.14 $488.19
10th $5,975.46 $54,748.60 $497.96
11th $6,094.97 $60,843.58 $507.91
12th $6,216.87 $67,060.45 $518.07
13th $6,341.21 $73,401.66 $528.43
14th $6,468.03 $79,869.69 $539.00
15th $6,597.39 $86,467.08 $549.78

By these calculations, You’d only need to own this home for 11 years to break even on your original investment of the mello roos payoff. Additionally, even if you kept this property as a rental investment, you’d end up paying $114,202 after 20 years and $185,256 in 29 years. Who’s to say that you’d keep the home for 30 years as a residence or rental or at all but 300% of the original $60,000 doesn’t sound like too much fun to me.

Now, let’s talk about selling your home. If you were trying to sell your $700,000 house and a prospective buyer was calculating their total monthly mortgage payment on a 20% down conforming 30 year fixed loan with a principal balance of $560,000. Their monthly payment will be $3,005 but if they were to budget monthly for the Mello Roos it would be $3,513 ($3,005 P&I + $508 MR). If a buyer was trying to determine whether they could afford $3,005/mo vs. $3,513/mo do you think my house without MR would be a more attractive purchase to them? Or 5 years later where that same payment would be $3,565 and so on. That $3,500ish payment would be as if your principal loan amount was $650,000 ($90,000 more) because of the MR amount.

I’d be interested to hear a compelling argument NOT to pay off your MR.

[ahewitson]

[quote=bearishgurl][quote=ahewitson]What happens if I would like to pay off the bond in full? Let’s say I wanted to buy a home in 4S and found out that my portion of the 2 bonds in that area was $60,000 for easy numbers. If I were to write a check and pay it off in full, would I be exempt from the timelines and the potential bond expiration in 2040?[/quote]

Why would you want to do that, ahewitson? Do you plan on keeping the property 29 years (until 2040)? Any potential buyer you later have for your house will EXPECT to pay these bonds for a property located in your area. You will not pay any more for the bonds by paying them twice per year on your property tax bills than if you pay them all up front. Nor do I think it would increase your resale value if you paid them off.[/quote]

Here’s a simple calculation for you BG. Let’s say I was just going to stay in the house for half that time (15 years instead of 29 years). The starting Mello Roos is $5,000 with an annual increase of 2% each year. The schedule would look like this:

Years Mello Roos Running Total Mo. Cost
1st $5,000.00 $416.67
2nd $5,100.00 $10,100.00 $425.00
3rd $5,202.00 $15,302.00 $433.50
4th $5,306.04 $20,608.04 $442.17
5th $5,412.16 $26,020.20 $451.01
6th $5,520.40 $31,540.60 $460.03
7th $5,630.81 $37,171.42 $469.23
8th $5,743.43 $42,914.85 $478.62
9th $5,858.30 $48,773.14 $488.19
10th $5,975.46 $54,748.60 $497.96
11th $6,094.97 $60,843.58 $507.91
12th $6,216.87 $67,060.45 $518.07
13th $6,341.21 $73,401.66 $528.43
14th $6,468.03 $79,869.69 $539.00
15th $6,597.39 $86,467.08 $549.78

By these calculations, You’d only need to own this home for 11 years to break even on your original investment of the mello roos payoff. Additionally, even if you kept this property as a rental investment, you’d end up paying $114,202 after 20 years and $185,256 in 29 years. Who’s to say that you’d keep the home for 30 years as a residence or rental or at all but 300% of the original $60,000 doesn’t sound like too much fun to me.

Now, let’s talk about selling your home. If you were trying to sell your $700,000 house and a prospective buyer was calculating their total monthly mortgage payment on a 20% down conforming 30 year fixed loan with a principal balance of $560,000. Their monthly payment will be $3,005 but if they were to budget monthly for the Mello Roos it would be $3,513 ($3,005 P&I + $508 MR). If a buyer was trying to determine whether they could afford $3,005/mo vs. $3,513/mo do you think my house without MR would be a more attractive purchase to them? Or 5 years later where that same payment would be $3,565 and so on. That $3,500ish payment would be as if your principal loan amount was $650,000 ($90,000 more) because of the MR amount.

I’d be interested to hear a compelling argument NOT to pay off your MR.

[ahewitson]

[quote=bearishgurl][quote=ahewitson]What happens if I would like to pay off the bond in full? Let’s say I wanted to buy a home in 4S and found out that my portion of the 2 bonds in that area was $60,000 for easy numbers. If I were to write a check and pay it off in full, would I be exempt from the timelines and the potential bond expiration in 2040?[/quote]

Why would you want to do that, ahewitson? Do you plan on keeping the property 29 years (until 2040)? Any potential buyer you later have for your house will EXPECT to pay these bonds for a property located in your area. You will not pay any more for the bonds by paying them twice per year on your property tax bills than if you pay them all up front. Nor do I think it would increase your resale value if you paid them off.[/quote]

Here’s a simple calculation for you BG. Let’s say I was just going to stay in the house for half that time (15 years instead of 29 years). The starting Mello Roos is $5,000 with an annual increase of 2% each year. The schedule would look like this:

Years Mello Roos Running Total Mo. Cost
1st $5,000.00 $416.67
2nd $5,100.00 $10,100.00 $425.00
3rd $5,202.00 $15,302.00 $433.50
4th $5,306.04 $20,608.04 $442.17
5th $5,412.16 $26,020.20 $451.01
6th $5,520.40 $31,540.60 $460.03
7th $5,630.81 $37,171.42 $469.23
8th $5,743.43 $42,914.85 $478.62
9th $5,858.30 $48,773.14 $488.19
10th $5,975.46 $54,748.60 $497.96
11th $6,094.97 $60,843.58 $507.91
12th $6,216.87 $67,060.45 $518.07
13th $6,341.21 $73,401.66 $528.43
14th $6,468.03 $79,869.69 $539.00
15th $6,597.39 $86,467.08 $549.78

By these calculations, You’d only need to own this home for 11 years to break even on your original investment of the mello roos payoff. Additionally, even if you kept this property as a rental investment, you’d end up paying $114,202 after 20 years and $185,256 in 29 years. Who’s to say that you’d keep the home for 30 years as a residence or rental or at all but 300% of the original $60,000 doesn’t sound like too much fun to me.

Now, let’s talk about selling your home. If you were trying to sell your $700,000 house and a prospective buyer was calculating their total monthly mortgage payment on a 20% down conforming 30 year fixed loan with a principal balance of $560,000. Their monthly payment will be $3,005 but if they were to budget monthly for the Mello Roos it would be $3,513 ($3,005 P&I + $508 MR). If a buyer was trying to determine whether they could afford $3,005/mo vs. $3,513/mo do you think my house without MR would be a more attractive purchase to them? Or 5 years later where that same payment would be $3,565 and so on. That $3,500ish payment would be as if your principal loan amount was $650,000 ($90,000 more) because of the MR amount.

I’d be interested to hear a compelling argument NOT to pay off your MR.

[ahewitson]

[quote=kcal09][quote=ahewitson][quote=DataAgent]”Holy crap! If zillow is correct they paid 1.5 in 2006. I can’t belive the asking price is under 900k. Something doesn’t seem right here?”

It’s probably just another short sale. The current owners haven’t paid their property taxes in several years.[/quote]

My realtor took us to this house and it’s definitely been lived in. The backyard has not been kept very well and the interior of the house has a very odd design. Regardless of what the house sold for 5 years ago, I don’t think it’s worth the $895K it’s currently listed for. Maybe about $50K less than that as a possibility. You’ll need at least that much to make it comfortable. Very poor natural lighting inside the house as well.[/quote]

If you don’t think it’s worth $895k then all the smaller “Serenity” homes should be around $700k. This home has more square footage with a larger lot and is supposedly of higher quality. Thus, are you implying that “Stonebridge” in general is still way overpriced?[/quote]

The home is extremely dark inside. Very little natural light comes into any room. The kitchen/livingroom/great room floor plan is very awkward as the kitchen bar “straddles” both rooms. Almost all of the landscaping in the rear is dead or dying and the overall condition of the interior/exterior is rundown. You can’t base your judgement on numbers and square footage alone. You should also consider the actual condition once if you’ve been in and out of this home. Some of these things can be changed and/or improved with work, time, and $$$ but you can only do so much to a home to make it into a different home before you’ve actually just rebuilt that home.

P.S. Anyone putting an offer on that home should stop by Costco first and get a palette of Clorox Disinfecting Wipes to rid every surface of the “ick” and residue. Some air fresheners wouldn’t hurt either.

[ahewitson]

[quote=kcal09][quote=ahewitson][quote=DataAgent]”Holy crap! If zillow is correct they paid 1.5 in 2006. I can’t belive the asking price is under 900k. Something doesn’t seem right here?”

It’s probably just another short sale. The current owners haven’t paid their property taxes in several years.[/quote]

My realtor took us to this house and it’s definitely been lived in. The backyard has not been kept very well and the interior of the house has a very odd design. Regardless of what the house sold for 5 years ago, I don’t think it’s worth the $895K it’s currently listed for. Maybe about $50K less than that as a possibility. You’ll need at least that much to make it comfortable. Very poor natural lighting inside the house as well.[/quote]

If you don’t think it’s worth $895k then all the smaller “Serenity” homes should be around $700k. This home has more square footage with a larger lot and is supposedly of higher quality. Thus, are you implying that “Stonebridge” in general is still way overpriced?[/quote]

The home is extremely dark inside. Very little natural light comes into any room. The kitchen/livingroom/great room floor plan is very awkward as the kitchen bar “straddles” both rooms. Almost all of the landscaping in the rear is dead or dying and the overall condition of the interior/exterior is rundown. You can’t base your judgement on numbers and square footage alone. You should also consider the actual condition once if you’ve been in and out of this home. Some of these things can be changed and/or improved with work, time, and $$$ but you can only do so much to a home to make it into a different home before you’ve actually just rebuilt that home.

P.S. Anyone putting an offer on that home should stop by Costco first and get a palette of Clorox Disinfecting Wipes to rid every surface of the “ick” and residue. Some air fresheners wouldn’t hurt either.

[ahewitson]

[quote=kcal09][quote=ahewitson][quote=DataAgent]”Holy crap! If zillow is correct they paid 1.5 in 2006. I can’t belive the asking price is under 900k. Something doesn’t seem right here?”

It’s probably just another short sale. The current owners haven’t paid their property taxes in several years.[/quote]

My realtor took us to this house and it’s definitely been lived in. The backyard has not been kept very well and the interior of the house has a very odd design. Regardless of what the house sold for 5 years ago, I don’t think it’s worth the $895K it’s currently listed for. Maybe about $50K less than that as a possibility. You’ll need at least that much to make it comfortable. Very poor natural lighting inside the house as well.[/quote]

If you don’t think it’s worth $895k then all the smaller “Serenity” homes should be around $700k. This home has more square footage with a larger lot and is supposedly of higher quality. Thus, are you implying that “Stonebridge” in general is still way overpriced?[/quote]

The home is extremely dark inside. Very little natural light comes into any room. The kitchen/livingroom/great room floor plan is very awkward as the kitchen bar “straddles” both rooms. Almost all of the landscaping in the rear is dead or dying and the overall condition of the interior/exterior is rundown. You can’t base your judgement on numbers and square footage alone. You should also consider the actual condition once if you’ve been in and out of this home. Some of these things can be changed and/or improved with work, time, and $$$ but you can only do so much to a home to make it into a different home before you’ve actually just rebuilt that home.

P.S. Anyone putting an offer on that home should stop by Costco first and get a palette of Clorox Disinfecting Wipes to rid every surface of the “ick” and residue. Some air fresheners wouldn’t hurt either.

[ahewitson]

[quote=kcal09][quote=ahewitson][quote=DataAgent]”Holy crap! If zillow is correct they paid 1.5 in 2006. I can’t belive the asking price is under 900k. Something doesn’t seem right here?”

It’s probably just another short sale. The current owners haven’t paid their property taxes in several years.[/quote]

My realtor took us to this house and it’s definitely been lived in. The backyard has not been kept very well and the interior of the house has a very odd design. Regardless of what the house sold for 5 years ago, I don’t think it’s worth the $895K it’s currently listed for. Maybe about $50K less than that as a possibility. You’ll need at least that much to make it comfortable. Very poor natural lighting inside the house as well.[/quote]

If you don’t think it’s worth $895k then all the smaller “Serenity” homes should be around $700k. This home has more square footage with a larger lot and is supposedly of higher quality. Thus, are you implying that “Stonebridge” in general is still way overpriced?[/quote]

The home is extremely dark inside. Very little natural light comes into any room. The kitchen/livingroom/great room floor plan is very awkward as the kitchen bar “straddles” both rooms. Almost all of the landscaping in the rear is dead or dying and the overall condition of the interior/exterior is rundown. You can’t base your judgement on numbers and square footage alone. You should also consider the actual condition once if you’ve been in and out of this home. Some of these things can be changed and/or improved with work, time, and $$$ but you can only do so much to a home to make it into a different home before you’ve actually just rebuilt that home.

P.S. Anyone putting an offer on that home should stop by Costco first and get a palette of Clorox Disinfecting Wipes to rid every surface of the “ick” and residue. Some air fresheners wouldn’t hurt either.

[ahewitson]

[quote=kcal09][quote=ahewitson][quote=DataAgent]”Holy crap! If zillow is correct they paid 1.5 in 2006. I can’t belive the asking price is under 900k. Something doesn’t seem right here?”

It’s probably just another short sale. The current owners haven’t paid their property taxes in several years.[/quote]

My realtor took us to this house and it’s definitely been lived in. The backyard has not been kept very well and the interior of the house has a very odd design. Regardless of what the house sold for 5 years ago, I don’t think it’s worth the $895K it’s currently listed for. Maybe about $50K less than that as a possibility. You’ll need at least that much to make it comfortable. Very poor natural lighting inside the house as well.[/quote]

If you don’t think it’s worth $895k then all the smaller “Serenity” homes should be around $700k. This home has more square footage with a larger lot and is supposedly of higher quality. Thus, are you implying that “Stonebridge” in general is still way overpriced?[/quote]

The home is extremely dark inside. Very little natural light comes into any room. The kitchen/livingroom/great room floor plan is very awkward as the kitchen bar “straddles” both rooms. Almost all of the landscaping in the rear is dead or dying and the overall condition of the interior/exterior is rundown. You can’t base your judgement on numbers and square footage alone. You should also consider the actual condition once if you’ve been in and out of this home. Some of these things can be changed and/or improved with work, time, and $$$ but you can only do so much to a home to make it into a different home before you’ve actually just rebuilt that home.

P.S. Anyone putting an offer on that home should stop by Costco first and get a palette of Clorox Disinfecting Wipes to rid every surface of the “ick” and residue. Some air fresheners wouldn’t hurt either.

[ahewitson]

[quote=UCGal][quote=sdrealtor]That’s great for you! Let us know how it all works out a few year down the road newbie.[/quote]
Why the snark? I’m curious what he/she said that you felt the need for it?

(another example of my naivety I guess.)[/quote]

Who knows… Didn’t know where it came from either.

[ahewitson]

[quote=UCGal][quote=sdrealtor]That’s great for you! Let us know how it all works out a few year down the road newbie.[/quote]
Why the snark? I’m curious what he/she said that you felt the need for it?

(another example of my naivety I guess.)[/quote]

Who knows… Didn’t know where it came from either.

[ahewitson]

[quote=UCGal][quote=sdrealtor]That’s great for you! Let us know how it all works out a few year down the road newbie.[/quote]
Why the snark? I’m curious what he/she said that you felt the need for it?

(another example of my naivety I guess.)[/quote]

Who knows… Didn’t know where it came from either.

[ahewitson]

[quote=UCGal][quote=sdrealtor]That’s great for you! Let us know how it all works out a few year down the road newbie.[/quote]
Why the snark? I’m curious what he/she said that you felt the need for it?

(another example of my naivety I guess.)[/quote]

Who knows… Didn’t know where it came from either.

[Author]

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