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Can I Pay Off the CDD?
Can I Pay Off the CDD?   Yes you can pay off the CDD. Buyers want to lower their monthly payment bottom line, so for some Buyers paying off the CDD makes sense. We were asked this a couple of days ago when a cash Buyer was considering a purchase in a Community Development District.
CDD fees are comprised of two parts - one part Bond, which is paid off in a certain time period and one part Operations & Management, which remains after the CDD is paid. When a Buyer has cash and wants to lower their monthly cash flow, it may make sense to pay off the CDD fee.
However, some people would argue that unless you are planning to stay in the house the entire 10-30 years, why pay something in advance when you can use that cash for other investments? Some people just want the peace of mind knowing their annual fees are lower. Consider CDD and O&M fees of $1950. CDD fee is $1100 and O&M is $850. That is $162.50 a month versus $70.83 a month if the CDD fee is paid off. This is a personal decision, so consulting your financial planner or ... more

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