The $726 per month in HOA and Mello-Roos fees may not have sounded like much in the peak era, but today it sounds like $140,000 in purchasing power, given the 4.5% jumbo 30-year fixed rate. Is the list price low enough, or backyard cool enough, to compensate?
The HOA itself is at $300/month. The MR payoff would likely be $50k. So think of the purchase price as $1.025 million. But that is still a very outrageous HOA for nothing other than being in a gated community.
I checked my CFD (common facilities district) to get a MR payoff amount and one of the CFDs (San Diegueto) told me that the MR cannot be paid off. I think it may be better to check the MR payoff amount to verify if that affects whether you will buy the property.
Do you guys know anything about MR’s that cannot be paid off?
I have heard the same, that some CFDs can be paid off, and some can’t. Is it because they want to work you for the extra dough?
Where are the Mello-Roos police?
Thanks Jim, that’s a good thought. I will be checking with the CFD or talk to someone else there to verify whether there is really a restriction to paying it off although they simply told my wife that it could not be paid off and did not hint at asking for more money at the time.
MR/HOA fees have progressively risen over the years for new developments and I wonder if the trend will continue or will there be a strong enough aversion to high fees? How much in fees are young familes willing to pay in a newer high demand area in a top school district? Is $500+/mo MR&HOA going to the new normal down the road and make todays fees look like a good deal?
The City of San Diego has outsourced the administration of their CFD’s to a consultant in Irvine. In order to get the actual pay off they charge $500, which is applied toward the pay off, IF you pay it off once you know how much it is. Overall, there is some savings to paying it off early like most debts. If you have the cash and plan to be in your home for the remainder of the 30 term of the bond(s), it is worth consideration.