[ocrenter]

[quote=briansd1]I’m glad you appreciate the compliment. Those guys are role examples for many folks indeed.[/quote]

Only America’s toughest sheriff has the balls to question the authentisty of that Kenyan Commie Muslim’s forged birth certificate! He is a true American Hero!

[ocrenter]

[quote=briansd1][quote=flu]
What’s canada?[/quote]

It’s probably next to France. Don’t they have socialized medicine there?[/quote]

Socialized medicine? Just code for communism. Damn commie pigs!!!

[ocrenter]

[quote=svelte][quote=flu]Side note… Can we all agree and clarify from now on in posts that if we use “CV”, it means Carmel Valley, not Chula Vista… For Chula Vista, let’s use “cv”. Thanks for the compliance :)[/quote]

Actually, no. It has always bugged me that piggs assume CV means Carmel Valley.

It should be context dependent. In this case, we are talking about Chula Vista, so it stands for Chula Vista.

You are able to tell the difference between when CA stands for California and when it stands for Canada, aren’t you?[/quote]

What about CVA for Carmel Valley since it is Asian dominant. And CVH for Chula Vista since it is Hispanic dominant. 🙂

[ocrenter]

[quote=Navydoc]Does it have to be San Diego county? I know of a really nice house for sale in Gaithersburg Maryland……[/quote]

Haha, nice.

The DC area housing market is doing pretty well I heard.

[ocrenter]

[quote=bearishgurl]

Not sure about investment potential but if the County can unload that landfill site on a “green” enterprise who will have the technology to mitigate the radon exposure, I think the stigma (and hazards) could potentially disappear. Time will tell.[/quote]

Uh, ok. Yes they do have an old landfill next to SEH. I doubt the concern you are raising is causing much stigma for SM. how many potential SM buyers are turned off by the stigma of an old landfill and the fear of radon exposure? Any idea, sdrealtor?

[ocrenter]

[quote=temeculaguy]Is there a way to find out what the bond is actually paying in interest as opposed to trying to calculate it yourself. I’ve read numerous articles where mello-roos districts have refinanced and lowered the cost to residents. Could some of what looks like mello-roos be a community service district fee, which can’t be paid off as it is for ongoing maintenance or services that other residents of a city do not get. For over 50k, you’d want to make sure that you are getting out of the entire bill, not just part. You’d also want to make sure there aren’t plans to refi on the part of the municipality as the buyers of certain muni bonds don’t pay tax, thus they have a lower yield. I’m kinda shocked they are paying 9%, that’s more Greece pays.

Here’s an article from about 5 years ago when rates were much higher and a municipality refi’d the mello roos for just a .9 interest rate bump.

http://www.theacorn.com/news/2006-05-18/Business/045.html

The article indicates the city in the article discovered by accident they could refi the mello roos bond, perhaps sending the mello rood district officials this info could save you even more, their rate should be less than a heloc.

If they end up doing it, I expect some mention in whatever news coverage they receive, it’s good for my social life[/quote]

Over 9% would have made the payoff an absolute no brainer. Not so with my MR. One of the CFD interest rate is at 5.5%. When I called the 800 number managing my MR, they were able to provide the interest rate and the approx payoff.

[ocrenter]

San Marcos is actually quite the up-and-comer city. It is well planned, the city has been extremely fiscally responsible, and the schools all have improved quite significantly over the last few years. There are already several new and attractive shopping areas. The city is finally breaking grounds on a long planned downtown area after clearing out a huge previously low income Latino area. of course the gradually growing CSUSM and the growing Kaiser hub there all will make it the center of north county.

I would say if looking at a place to invest in the north county, it would probably offer the most bang for your buck and higher chance of appreciation.

[ocrenter]

[quote=enron_by_the_sea][quote=ocrenter][quote=enron_by_the_sea]
——————
Disclaimers

1. If you are hit with (Federal) AMT then it does not help[/quote]

??? you mean it would help to pay off the mello roos using a HELOC, right?[/quote]

Precisely. If you are under AMT, you can’t deduct HELOC interest (but you can still deduct mortgage interest). So it might be better to do a cash-out refi instead to raise CLTV up to 80% and then use the cash-out money to pay off Mello Roos.[/quote]

Thanks for the clarification. Love that AMT, it is the gift that keeps on giving… Too bad I’m not successful enough to pay the Romney tax rate…

[ocrenter]

[quote=enron_by_the_sea]
——————
Disclaimers

1. If you are hit with (Federal) AMT then it does not help[/quote]

??? you mean it would help to pay off the mello roos using a HELOC, right?

[ocrenter]

[quote=sdnerd]Interesting discussion.

I called today to get rough numbers for a 4S property.

4S is in the process of adding more debt to the bonds, so you can’t do a payoff (they won’t have exact numbers) until middle of this year.

The estimate was $60-70K payoff for something that is currently at ~$5,600/year.

Worth considering.[/quote]

That would make the current rate around 7.5%. Not quite as high as the 9.3% from paranoid’s MR. Prob a different tract with a different CFD?

[ocrenter]

What bank is this with?

[ocrenter]

[quote=desmond]At least the typo on the title wasn’t Pubic.[/quote]

That would be “absolutely sickening.”

[ocrenter]

so much easier to drive to the nearest Goodwill drop off center. nice way to get rid of junk and write off on deductions as well.

[ocrenter]

[quote=enron_by_the_sea][quote=ocrenter]

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.
[/quote]

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.[/quote]

true, but I think in the case of paranoid, the home is already purchased. and also, the HELOC example is just a way to look at borrowing that amount at today’s interest rate, an attempt to do an apple to apple comparison.

[ocrenter]

[quote=paranoid]ER, you pay a fee but it is waived (deducted) when you pay the total payoff amount to pusd, so effectively it is free.
I’m still amazed by the huge rate they charge: total payoff is $57.5k , but current yearly MR is $5.7k until 2042(?). I believe most people don’t know that they are charged at such a rate.[/quote]

I back calculated from your numbers. So we are looking at 9.3%.

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.

Assuming you do end up selling in 10 years, you essentially break even and I think it would make a difference with potential buyers.

[Author]

Posts