Reduction on Mello Roos
- Thread starter Irvinecommuter
- Start date
jamesKirk said:
It covers most of newer TIC neighborhoods like Stonegate, Cypress Village, Eastwood, Portola Springs etc.
https://www.cityofirvine.org/admini...cilities-district-and-19131915-act-assessment
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irvinebullhousing
Well-known member
lnc said:
Great. I am glad for the reductions, any reduction.
This is two full tank of gas for my car. Which will carry me two weeks.
Compressed-Village said:lnc said:
Great. I am glad for the reductions, any reduction.
This is two full tank of gas for my car. Which will carry me two weeks.
Yeah, better than nothing. Considering MR lasts until you die it can add up over the years even at just $200 per year.
sgip
Well-known member
Refinancing Mello Roos Bonds can be a terrible idea. Example: If you owe 100k for 15 yrs at $500 per year per household, then refinance the $100k for 30 years now at $300 per household, have you saved anything? Spoiler Alert: ...... No.
The City of Rancho Santa Margarita was hoodwinked into refinancing their MR in the early 1990's, doubling the payoff costs. Several City Council members told me years later said it was the dumbest decision they ever made.
May want to check out how this refinancing was structured before celebrating this lower payment.
My .02c
The City of Rancho Santa Margarita was hoodwinked into refinancing their MR in the early 1990's, doubling the payoff costs. Several City Council members told me years later said it was the dumbest decision they ever made.
May want to check out how this refinancing was structured before celebrating this lower payment.
My .02c
irvinebullhousing
Well-known member
Soylent Green Is People said:
Right. Although we don?t know the exact terms. It?s like, yes it?s good to have a 15 years shorter term loan but most would do a 30 years to have a lower payment. Or sometimes even start all over again when they half way into it.
All likes to have extra money for other things
irvinebullhousing
Well-known member
AW said:Compressed-Village said:lnc said:
Great. I am glad for the reductions, any reduction.
This is two full tank of gas for my car. Which will carry me two weeks.
With EV, more like 20 fill ups
I agree. Went to the OC auto show and electric lines are getting a lot more interesting across all car builders.
Irvinehomeseeker
Active member
Compressed-Village said:Soylent Green Is People said:
Right. Although we don?t know the exact terms. It?s like, yes it?s good to have a 15 years shorter term loan but most would do a 30 years to have a lower payment. Or sometimes even start all over again when they half way into it.
All likes to have extra money for other things
I thought one of the AD bonds for Eastwood (around 1150$ annual payment) was going to expire in 2021....now does this mean payment will continue but 200$ less??
sgip
Well-known member
I don't think that question has been explored. There is a possibility that yes, the payment may be lower, but the term much, much longer. It would be wise to look into this and see if the bond managers are doing the right thing for the home owners or for the bond holders.
As a note regarding where The Soylent Green family domiciles, RSM's MR bonds were 20-25 year obligations. With the City starting sales in the late 1980's, most MR should have gone away by 2005-2006. Since the MR was refinanced only recently have we seen MR bonds be paid off - 2015-2020 - 10 or so years past their original payoff term. My tax bill has shrunk about $2,000 since moving to the area, but I'd rather have had zero or limited MR when I originally bought.
As a note regarding where The Soylent Green family domiciles, RSM's MR bonds were 20-25 year obligations. With the City starting sales in the late 1980's, most MR should have gone away by 2005-2006. Since the MR was refinanced only recently have we seen MR bonds be paid off - 2015-2020 - 10 or so years past their original payoff term. My tax bill has shrunk about $2,000 since moving to the area, but I'd rather have had zero or limited MR when I originally bought.
Cornflakes
Active member
MR, simply put, is homeowner's share of the debt that city has incurred to provide amenities. It's just that as homeowners, you have the previlege to pay it down over years but do not have authority to manage the debt yourself.
Just like any debt, the only way your monthly payments can come down is either you kept remaining term same while reducing the interest expense, or kept the same interest rate but extended the term. Or, some combo of the two.
The moment you extend the term, your overall out of pocket is going to be higher over the new term. Interest rate reduction has to be sufficient to offset the elongated costs and keep the balance favorable to homeowners. I feel that my odds are better with super lotto than counting on administrators to make it better deal for me.
Just like any debt, the only way your monthly payments can come down is either you kept remaining term same while reducing the interest expense, or kept the same interest rate but extended the term. Or, some combo of the two.
The moment you extend the term, your overall out of pocket is going to be higher over the new term. Interest rate reduction has to be sufficient to offset the elongated costs and keep the balance favorable to homeowners. I feel that my odds are better with super lotto than counting on administrators to make it better deal for me.
Irvinehomeseeker
Active member
lnc said:
I looked at my property bill for Eastwood and I don't see any reduction. The assessment titled "1915 AD BOND VG" is the same 1119.00 amount as last year.
Irvinehomeseeker said:
I took a second look at the letter and noted that the reduction of 1915 Bond is for the assessment district 11-24A, which is for Cypress Village (see the list below).
The earlier post about MR reduction back in 2015 was for the assessment district 07-22, which is Stonegate.
Sorry EW did get tax drop this year but good news for EW is that part of MR tax (R2 CFD 86-1, about $625) that will be expired on 9/1/2020.
Irvinehomeseeker
Active member
lnc said:Irvinehomeseeker said:
I took a second look at the letter and noted that the reduction of 1915 Bond is for the assessment district 11-24A, which is for Cypress Village (see the list below).
The earlier post about MR reduction back in 2015 was for the assessment district 07-22, which is Stonegate.
Sorry EW did get tax drop this year but good news for EW is that part of MR tax (R2 CFD 86-1, about $625) that will be expired on 9/1/2020.
Thanks for reconfirming the bond expiration...i had read that somewhere on TI.