Reduction on Mello Roos

Irvinecommuter

New member
Just got notice from Irvine that my mello roos got reduced due to refinancing.  Glad to see that the people in charge of it are not sleeping on the job.
 
Irvinecommuter said:
Just got notice from Irvine that my mello roos got reduced due to refinancing.  Glad to see that the people in charge of it are not sleeping on the job.
Is that for all communities in Irvine or just specific one you live?  :D
 
Roger said:
Irvinecommuter said:
Just got notice from Irvine that my mello roos got reduced due to refinancing.  Glad to see that the people in charge of it are not sleeping on the job.
Is that for all communities in Irvine or just specific one you live?  :D

The letter just talks about my district...it would make sense that other districts got refinanced as well though.
 
May want to read up on how they refinanced the MR. Out in Rancho Santa Margarita in the early 1990's recession the City thought it was a good idea to refi the MR, and that process nearly doubled the cost of the MR bonds compared to leaving them "as is". Most homeowners would rather have had -0- MR today, than an additional 5-7 years added to their tab. In speaking with one of the RSM City Councilmembers, now a Realtor, he confided that the refinancing of the MR bonds was the worst decision they'd ever made.

Anyone have details on what this refi plan actually has accomplished?
 
Soylent Green Is People said:
May want to read up on how they refinanced the MR. Out in Rancho Santa Margarita in the early 1990's recession the City thought it was a good idea to refi the MR, and that process nearly doubled the cost of the MR bonds compared to leaving them "as is". Most homeowners would rather have had -0- MR today, than an additional 5-7 years added to their tab. In speaking with one of the RSM City Councilmembers, now a Realtor, he confided that the refinancing of the MR bonds was the worst decision they'd ever made.

Anyone have details on what this refi plan actually has accomplished?

Since you are the expert...how would this happen?  I get why you pay a little longer due to the financing but if the principal is lower and the interest is lower, wouldn't you pay less overall regardless? 
 
Was it specific on how much savings you will be benefiting from?  A certain percentage decrease?


Irvinecommuter said:
Just got notice from Irvine that my mello roos got reduced due to refinancing.  Glad to see that the people in charge of it are not sleeping on the job.
 
Zenyatta1 said:
Was it specific on how much savings you will be benefiting from?  A certain percentage decrease?


Irvinecommuter said:
Just got notice from Irvine that my mello roos got reduced due to refinancing.  Glad to see that the people in charge of it are not sleeping on the job.

It gave me an average (like $150) but basically said YMMV.
 
It's similar to going from a 15 year fixed to a 30 year fixed. Yes, the payments are lower and feel nice, but in reality the interest charges are higher overall. These RSM Area MR bonds were about 9 years into a 20 year repayment when the City stretched them out by an additional 5 years from what I recall. Instead of them ending in 2011, now it's 2016 and beyond. The financial services company that structured the refinance no longer exists, but per my contact they made a boatload in fees on the deal.
 
Columbus grove recently got their MR reduced due to a bond refi.  Good to homeowners, adding a few more years at the end of 30-40 year bond doesn't matter.  Pretty sure the home will exchange hands a few more times before the MR is paid off.  Might as well enjoy the current reduction.
 
I'd take the lower since I feel like the MRs would never stop.  ;)
 
Except people on this board are always yapping about bond expiration dates and how some of theirs expire "soon".
 
Yes, it's nice to have a lower bill, but if you're going to hang on to the property as a rental, it's expensive in the long run. Once "unrefinanced MR" neighborhoods emerge, they may have a greater re-selling advantage over 2 street over homes with MR. Yes, these are all wild scenarios that may never ocurr, but you never know.

A similar example: Had the 241 Toll Road not been compelled to merge with the 73 Toll Road and help refinance their bonds, it's possible the 241 might have been "toll free" sooner than the year 2050 (or so). That would have been a nice reduction in my daily commute expense. Then again, the toll road prices do keep the riff raff off of that highway.... may have to re-think this.

My .02c
 
ps9 said:
Columbus grove recently got their MR reduced due to a bond refi.  Good to homeowners, adding a few more years at the end of 30-40 year bond doesn't matter.  Pretty sure the home will exchange hands a few more times before the MR is paid off.  Might as well enjoy the current reduction.

The Columbus Grove refi did not extend the expiration.
 
Back
Top