When considering your giving options, have you thought about giving non-cash assets? Today I'd like to tell you about gifts of stocks and bonds.
Gifts of stocks and bonds offer many benefits. You can receive a charitable income tax deduction and avoid paying capital gains tax on the sale of appreciated stock.
These gifts can be made through electronic transfer or by certified mail. To learn more, visit our website, www.NazareneFoundation.org. You can also contact us at 913.577.2983or info@nazarenefoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
About 15 years ago Linda's father passed away. As her inheritance, she received a commercial lot that was a mile outside of town. At the time she received the inherited property, it was worth about $100,000.
During those 15 years, the town has grown and there are now commercial buildings on both sides of her lot. Her lot is worth $400,000 and could be sold to a developer who would build a commercial building.
During the past few years, Bill and Linda have talked about selling the property. They have not received any income and have had to pay the taxes on the property. As the property value has increased, so have the annual property taxes.
They decided to stop and visit with their CPA Clara to discuss options for the property.
Bill: "Thank you for meeting with us today, Clara. Linda and I have been talking about our lot at the edge of town. As you know, the town has moved that direction and it is now surrounded by other commercial buildings. I think we could sell it and get a good price."
Linda: "Yes, since I inherited it 15 years ago from my father's estate the value has gone up. We put a value of $100,000 on it at the time, but it may sell for up to $400,000 today. We've had two or three inquirers who have suggested that $400,000 could be a pretty good price for the property."
Clara: "Well, this is a very good year to sell the property. But there are fairly high capital gains rates due to your other income and the growth in value. Because you have a large gain of $300,000 in the property, you could pay a large tax. "
Bill: "Yes, we've heard that there is a large potential tax. We would actually like to sell this lot and pay zero tax. Is there a way to sell without tax?"
Clara: "You could do what is called a 'zero tax' sale and unitrust. A charitable remainder unitrust is a special agreement. It allows you to bypass the gain on the property transferred to the trust, provides increased income and gives you a charitable deduction. The benefit of the plan is that you can place part of the property into the trust and sell that part tax-free. Then you are able to use the tax savings from the charitable deduction on that part to offset the tax on the cash you take out. If we do this correctly, you can sell; have part of the value in the unitrust and the balance in cash – all with zero net tax."
Bill: "Clara, please explain a little more about how that might work. How much of the property would we put into the trust and how much would we keep out?"
Clara: "That's a great question. Let's consider first the part that is transferred to the trust and the benefits of that part and then the cash out and finally we will explain how the agreement is created."
Charitable Trust
Bill and Linda could transfer approximately $240,000 in value to the charitable trust. This would be transferred by a deed of that percentage of the property to the trustee of the trust. If they desired, they could self-trustee the trust and select a company to do the trust accounting. Alternatively, a charity or a commercial trust company could serve as trustee.
After the trust is funded with part of the property, the trustee then can conduct a joint sale with Bill and Linda, who still own the balance of the property. The benefit of the charitable trust is that it is tax exempt if the rules are followed. It can sell the $240,000 in property and pay no tax. This could save approximately $42,000 in capital gains tax on that portion.
The trust amount then will be invested and could pay income to Bill and Linda for their two lifetimes. They selected a 5% trust because their financial planner recommended a distribution of 4% to 5% as the "safe in almost any investment climate" amount. Because the unitrust minimum was 5%, they selected that amount. Bill and Linda will receive an estimated $350,000 in income over their 26 year life expectancy.
In addition to bypassing gain on the property of the trust and receiving a very substantial income over their lifetimes, Bill and Linda receive a charitable deduction of about $79,000. Clara suggested that this deduction would be used over about three years and will save $31,000 in income tax.
Cash Received
Assuming that the property can be sold for $400,000, with $240,000 in value transferred by deed to the trust the cash balance is about $160,000.
This $160,000 will be transferred at closing to Bill and Linda. Because the appreciation was about 75% of the value, they would ordinarily owe a large capital gains tax on this amount. The capital gains tax could be over $28,000.
However, they are able to offset the capital gain with the charitable deduction. While the capital gain is taxed in the first year and the deduction savings are spread over three years, over time the approximate amount of savings equal the approximate amount of gain. The net result is that they have received $160,000 with essentially no net tax.
Benefits for Bill and Linda
Bill and Linda were very pleased with the plan that Clara suggested. They are able to keep the entire $400,000 in their home area and not send any significant amount to their state or federal tax authorities. The $240,000 in the trust will pay them income for two lives and eventually benefit two favorite charities. While there will be a substantial charitable gift in the future, the added income from investing all $400,000 for their lifetimes will replace a substantial part of the planned gift. In addition, they had always wanted to do something in the future to benefit their two favorite charities.
Savvy Living
Can you explain Medicare's enrollment rules along with when and how to apply? I turn 65 next year and want to make sure I know what to do.
The strict rules and timetables for Medicare enrollment can be confusing to many new retirees, so you're wise to plan ahead. Here's a simplified rundown of what to know.
First a quick review. Remember that original Medicare has two parts: Part A, which provides hospital coverage and is free for most people, and Part B, which covers doctors visits and other medical services, and costs $104.90 per month for most enrollees in 2015.
When to Enroll
Everyone is eligible for Medicare at age 65, even if your full Social Security retirement age is 66 or later.
You can enroll any time during the "initial enrollment period," which is a seven-month period that includes the three months before, the month of, and the three months after your 65th birthday. It's best to enroll three months before your birth month to ensure your coverage starts when you turn 65.
If you happen to miss the seven-month sign-up window for Medicare Part B, you'll have to wait until the next "general enrollment period," which runs from Jan. 1 to March 31 with benefits beginning the following July 1. You'll also incur a 10% penalty for each year you wait beyond your initial enrollment period, which will be tacked on to your monthly Part B premium. You can sign up for premium-free Part A at any time with no penalty.
Working Exceptions
Special rules apply if you're eligible for Medicare and still on the job. If you have health insurance coverage through your employer or your spouse's employer, and the company has 20 or more employees, you have a "special enrollment period" in which you can sign up. This means that you can delay enrolling in Medicare Part B, and are not subject to the 10% late-enrollment penalty as long as you sign up within eight months of losing that coverage.
Drug Coverage
Be aware that original Medicare does not cover prescription medications, so if you don't have credible drug coverage from an employer or union, you'll need to buy a Part D drug plan from a private insurance company (see medicare.gov/find-a-plan) during your initial enrollment if you want coverage. If you don't, you'll incur a premium penalty - 1% of the average national premium ($33.13 in 2015) for every month you don't have coverage - if you enroll later.
Supplemental Coverage
If you choose original Medicare, it's also a good idea to get a Medigap (Medicare supplemental) policy within six months after enrolling in Part B to help pay for things that aren't covered by Medicare like copayments, coinsurance and deductibles. See Medicare.gov and click on "Supplements & Other Insurance" to shop and compare policies.
All-In-One Plans
Instead of getting original Medicare, plus a stand-alone Part D drug plan and a Medigap policy, you could sign up for a Medicare Advantage plan (see medicare.gov/find-a-plan) that covers everything in one plan. These plans, which are also sold by insurance companies, are generally available through HMOs and PPOs and often have cheaper premiums, but their deductibles and co-pays are usually higher, making them better suited for healthier retirees.
How to Enroll
If you're already receiving your Social Security benefits before age 65, you will automatically be enrolled in Part A and Part B, and you'll receive your Medicare card about three months before your 65th birthday. It will include instructions to return it if you have work coverage that qualifies you for late enrollment. If you're not receiving Social Security, you'll need to enroll either online at socialsecurity.gov/medicare, over the phone at 800-772-1213 or through your local Social Security office.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.
The Egg Endowment
Let me tell you about a big egg business. Coming out of the military service at the close of the Korean war, Randall decided to put his agriculture degree to work, so he went into the chicken business. Randall and his wife, Janet, put it all on the line. For several years they struggled to make ends meet and finally, during one real desperate business cycle, they decided to turn their chicken business over to God. Janet said they prayed, "Lord, this is your business, do what you will with it."
God heard their prayers. Over the years, He prospered their labor. They eventually built a very large chicken business with over 16 million chickens housed in various states. They continued to honor God's faithfulness by becoming generous givers and teaching the principles of generous giving to their four children. In 2007, Randall, Janet and some of their family established a substantial endowment fund with the Church of the Nazarene Foundation. This endowment fund will generate income to the local Church of the Nazarene for use in family and children's ministries. The pastor says, "This gift will enable our church to reach into the homes and lives of countless people without negatively impacting our daily operational needs."
The eggs they gathered over a lifetime will produce far more than a wonderful breakfast.
Washington News
NFL 'Punts' on Tax Exemption
In 1942 the IRS granted tax exempt status to the National Football League (NFL). While most of the billions of dollars the NFL receives each year from television rights, licensing agreements and ticket sales are distributed to the 32 teams and therefore taxable, the NFL League Office is tax exempt. This exemption has saved tens of millions of dollars in corporate income tax since 1942.
On April 28, NFL Commissioner Roger Goodell sent a letter to House Ways and Means Chairman Paul Ryan (R-WI) and Ranking Member Sander Levin (D-MI), and stated, “I write to inform you that the NFL owners have determined that the League Office plans to file returns as a taxable entity for our fiscal year 2015.”
NFL Commissioner Goodell also sent a copy of the letter to the 32 team owners. He observed that “the tax exempt status of the league office has been mischaracterized repeatedly in recent years.” With the adverse publicity for the NFL, Goodell indicated that “the League Office and Management Council [will]file returns as taxable entities, and the change in filing status will make no material difference to our business. As a result, the committee decided to eliminate this distraction.”
Members of Congress responded favorably to the NFL decision to drop exempt status. House Oversightand Government Reform Committee Chairman Jason Chaffetz (R-UT) and Ranking Member Elijah Cummings (D-MD) stated, “We are extremely pleased with the decision from the NFL to waive its tax-exempt status. Congress has tried to tackle this issue before, but we made it one of our committee’s priorities this year. It is rewarding to see such an important and positive step toward restoring basic fairness. We hope other professional sports organizations in similar situations will follow the positive example set by the NFL, and we look forward to rightfully returning millions of dollars to the Federal Treasury as a result.”
FINANCES
God heard their prayers. Over the years, He prospered their labor. They eventually built a very large chicken business with over 16 million chickens housed in various states. They continued to honor God's faithfulness by becoming generous givers and teaching the principles of generous giving to their four children. In 2007, Randall, Janet and some of their family established a substantial endowment fund with the Church of the Nazarene Foundation. This endowment fund will generate income to the local Church of the Nazarene for use in family and children's ministries. The pastor says, "This gift will enable our church to reach into the homes and lives of countless people without negatively impacting our daily operational needs."
The eggs they gathered over a lifetime will produce far more than a wonderful breakfast.
Washington News
In 1942 the IRS granted tax exempt status to the National Football League (NFL). While most of the billions of dollars the NFL receives each year from television rights, licensing agreements and ticket sales are distributed to the 32 teams and therefore taxable, the NFL League Office is tax exempt. This exemption has saved tens of millions of dollars in corporate income tax since 1942.
On April 28, NFL Commissioner Roger Goodell sent a letter to House Ways and Means Chairman Paul Ryan (R-WI) and Ranking Member Sander Levin (D-MI), and stated, “I write to inform you that the NFL owners have determined that the League Office plans to file returns as a taxable entity for our fiscal year 2015.”
NFL Commissioner Goodell also sent a copy of the letter to the 32 team owners. He observed that “the tax exempt status of the league office has been mischaracterized repeatedly in recent years.” With the adverse publicity for the NFL, Goodell indicated that “the League Office and Management Council [will]file returns as taxable entities, and the change in filing status will make no material difference to our business. As a result, the committee decided to eliminate this distraction.”
Members of Congress responded favorably to the NFL decision to drop exempt status. House Oversightand Government Reform Committee Chairman Jason Chaffetz (R-UT) and Ranking Member Elijah Cummings (D-MD) stated, “We are extremely pleased with the decision from the NFL to waive its tax-exempt status. Congress has tried to tackle this issue before, but we made it one of our committee’s priorities this year. It is rewarding to see such an important and positive step toward restoring basic fairness. We hope other professional sports organizations in similar situations will follow the positive example set by the NFL, and we look forward to rightfully returning millions of dollars to the Federal Treasury as a result.”
FINANCES
Stocks - Apple Reports Record Earnings
Apple Inc. (AAPL) released its latest quarterly earnings report on Monday, April 27. Earnings for the quarter ending in March 2015 hit record levels.
Apple reported quarterly revenue of $58 billion. This represents an increase from the comparable period last year when the company reported revenue of $45.6 billion.
"We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," said Apple CEO Tim Cook. "We're seeing a higher rate of people switching to iPhone than we've experienced in previous cycles, and we're off to an exciting start to the June quarter with the launch of Apple Watch."
The company reported net income of $13.6 billion or $2.33 per share for the quarter. This represents an increase from the same period last year when Apple reported net income of $10.2 billion or $1.66 per share.
Apple reported record earnings. Earnings per share rose 40% and sales rose 27% from the same period last year. Just when things couldn't seem to get any better for the company a report surfaced that the taptic engine in the Apple Watch is not working for people with darker skin or tattoos. The taptic engine is the sensor that enables the watch to monitor users' heartbeats. So, despite the record earnings, Apple's stock price declined this week.
Apple (AAPL) shares ended the week at $128.95, down 2.5% for the week.
Twitter Disappoints Investors
Twitter, Inc. (TWTR) reported its latest quarterly results on Tuesday, April 28. The company's results disappointed investors.
The company reported revenue of $435.94 million for the quarter. This represents an increase compared to the comparable quarter last year when Twitter reported revenue of $250.49 million.
"While we exceeded our EBITDA target for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products," said Dick Costolo, CEO of Twitter. "It is still early days for these products, and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future. We remain confident in our strategy and in Twitter's long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities: strengthening the core, reducing barriers to consumption and delivering new apps and services."
Twitter reported a quarterly net loss of $162.44 million. This net loss is larger than the net loss of $132.36 million that Twitter reported in the same quarter last year.
Twitter had a difficult week this week. In addition to an earnings report that showed the company performing below expectations, Yahoo Finance reported that Twitter is under investigation for possible securities fraud. Twitter announced a loss of $162 million for its latest quarter and this caps a string of losses since the company went public in November 2013. Specifically, the investigation is looking into whether Twitter released unduly optimistic and misleading public statements concerning its advertising revenues and growth for the latest quarter. In addition, there are questions about Twitter's use of stock based compensation and the amount of compensation earned by its new CEO.
Twitter (TWTR) shares ended the week at $37.84, down 25.6% for the week.
Time Warner Cable at a Crossroads
Time Warner, Inc. (TWX) reported its latest quarterly earnings on Wednesday, April 29. The company sought to reassure investors as Comcast's $45 billion acquisition of the company fell through.
Time Warner reported quarterly revenue of $7.13 billion. This represents an increase from the same period last year when the company reported revenue of $6.80 billion.
"We got off to a very strong start in 2015, with revenues up 5%, and adjusted operating income growing 12% to a quarterly record of $1.8 billion," said Jeff Bewkes, Chairman and CEO of Time Warner. "This led to a 23% increase in adjusted EPS and puts us on track to achieve our goals for the year. Reflecting our strong commitment to provide direct returns to shareholders, we returned more than $1.4 billion in dividends and share repurchases year-to-date."
The company reported net income of $970 million. This represents a significant decline from the comparable period last year when the company reported net income of $1.29 billion. Earnings per sharecame in at $1.10 per share.
Comcast Corporation offered to purchase Time Warner Cable for $45 billion in February 2014. Since the deal posed antitrust concerns it had to be reviewed by the FCC. During the past several weeks, regulators indicated that the DOJ would file for an injunction to block the deal. As a result, Comcast announced last Thursday that it would abandon the proposed acquisition. There are rumors that Time Warner may now consider a deal with Charter Communications.
Time Warner Cable (TWX) shares ended the week at $85.58, down 0.2% for the week.
The Dow started the week of 4/27 at 18,098 and closed at 18,024 on 5/1. The S&P 500 started the week at 2,119 and closed at 2,108. The NASDAQ started the week at 5,104 and closed at 5,005.
Apple Inc. (AAPL) released its latest quarterly earnings report on Monday, April 27. Earnings for the quarter ending in March 2015 hit record levels.
Apple reported quarterly revenue of $58 billion. This represents an increase from the comparable period last year when the company reported revenue of $45.6 billion.
"We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," said Apple CEO Tim Cook. "We're seeing a higher rate of people switching to iPhone than we've experienced in previous cycles, and we're off to an exciting start to the June quarter with the launch of Apple Watch."
The company reported net income of $13.6 billion or $2.33 per share for the quarter. This represents an increase from the same period last year when Apple reported net income of $10.2 billion or $1.66 per share.
Apple reported record earnings. Earnings per share rose 40% and sales rose 27% from the same period last year. Just when things couldn't seem to get any better for the company a report surfaced that the taptic engine in the Apple Watch is not working for people with darker skin or tattoos. The taptic engine is the sensor that enables the watch to monitor users' heartbeats. So, despite the record earnings, Apple's stock price declined this week.
Apple (AAPL) shares ended the week at $128.95, down 2.5% for the week.
Twitter Disappoints Investors
Twitter, Inc. (TWTR) reported its latest quarterly results on Tuesday, April 28. The company's results disappointed investors.
The company reported revenue of $435.94 million for the quarter. This represents an increase compared to the comparable quarter last year when Twitter reported revenue of $250.49 million.
"While we exceeded our EBITDA target for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products," said Dick Costolo, CEO of Twitter. "It is still early days for these products, and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future. We remain confident in our strategy and in Twitter's long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities: strengthening the core, reducing barriers to consumption and delivering new apps and services."
Twitter reported a quarterly net loss of $162.44 million. This net loss is larger than the net loss of $132.36 million that Twitter reported in the same quarter last year.
Twitter had a difficult week this week. In addition to an earnings report that showed the company performing below expectations, Yahoo Finance reported that Twitter is under investigation for possible securities fraud. Twitter announced a loss of $162 million for its latest quarter and this caps a string of losses since the company went public in November 2013. Specifically, the investigation is looking into whether Twitter released unduly optimistic and misleading public statements concerning its advertising revenues and growth for the latest quarter. In addition, there are questions about Twitter's use of stock based compensation and the amount of compensation earned by its new CEO.
Twitter (TWTR) shares ended the week at $37.84, down 25.6% for the week.
Time Warner Cable at a Crossroads
Time Warner, Inc. (TWX) reported its latest quarterly earnings on Wednesday, April 29. The company sought to reassure investors as Comcast's $45 billion acquisition of the company fell through.
Time Warner reported quarterly revenue of $7.13 billion. This represents an increase from the same period last year when the company reported revenue of $6.80 billion.
"We got off to a very strong start in 2015, with revenues up 5%, and adjusted operating income growing 12% to a quarterly record of $1.8 billion," said Jeff Bewkes, Chairman and CEO of Time Warner. "This led to a 23% increase in adjusted EPS and puts us on track to achieve our goals for the year. Reflecting our strong commitment to provide direct returns to shareholders, we returned more than $1.4 billion in dividends and share repurchases year-to-date."
The company reported net income of $970 million. This represents a significant decline from the comparable period last year when the company reported net income of $1.29 billion. Earnings per sharecame in at $1.10 per share.
Comcast Corporation offered to purchase Time Warner Cable for $45 billion in February 2014. Since the deal posed antitrust concerns it had to be reviewed by the FCC. During the past several weeks, regulators indicated that the DOJ would file for an injunction to block the deal. As a result, Comcast announced last Thursday that it would abandon the proposed acquisition. There are rumors that Time Warner may now consider a deal with Charter Communications.
Time Warner Cable (TWX) shares ended the week at $85.58, down 0.2% for the week.
The Dow started the week of 4/27 at 18,098 and closed at 18,024 on 5/1. The S&P 500 started the week at 2,119 and closed at 2,108. The NASDAQ started the week at 5,104 and closed at 5,005.
Bonds - Treasury Prices Fall
Treasury yields rose and prices fell this week as sovereign yields in Europe and U.S. economic data caused investors to sell U.S. debt. Economic data released in the U.S. this week included an interest-rate statement by the Federal Open Market Committee (FOMC), the U.S. economy's first quarter GDP report and the Institute for Supply Management's (ISM) manufacturing index.
The Commerce Department released its first estimate of the U.S. economy's first quarter 2015 Gross Domestic Product (GDP) on Wednesday, April 29. The report announced that the economy grew at an annually adjusted rate of 0.2%. That is a significant decrease from the 2.2% growth experienced in the fourth quarter of 2014. The Commerce Department identified factors such as harsh weather, a strong dollar and labor disputes at ports on the West Coast as reasons for the slowdown.
The ISM released its monthly manufacturing index on Friday, May 1. To generate the index, the ISM surveys over 300 manufacturing firms across the US asking questions related to employment, inventories, new orders and supplier deliveries. An increasing index typically means that bond markets will decrease because of sensitivity to increasing inflation. In April, the index held steady at 51.5. Economists had expected the index to increase to 52. During the past six months, the index has dropped steadily from 57.9 in October to its current level.
The FOMC released its monthly monetary policy release on Wednesday, April 29. The committee reaffirmed its current policy. The release stated, "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term."
Investors have wondered during the past several months whether the Federal Reserve will begin raising interest rates as early as June 2015. However, after this latest round of economic reports, many investors believe that the federal funds rate will remain at its current level through the middle of the year.
The economic news caused investors to sell U.S. Treasury bonds. The 10-year Treasury yield rose to a high of 2.12% in early Friday morning trading. This is the highest yield since March 13.
The 10-year Treasury note yield finished the week of 4/27 at 2.12% while the 30-year Treasury note yield finished the week at 2.83%.
CDs and Mortgages - Interest Rates Increase Slightly
Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
The Global Church of the Nazarene Foundation
The ISM released its monthly manufacturing index on Friday, May 1. To generate the index, the ISM surveys over 300 manufacturing firms across the US asking questions related to employment, inventories, new orders and supplier deliveries. An increasing index typically means that bond markets will decrease because of sensitivity to increasing inflation. In April, the index held steady at 51.5. Economists had expected the index to increase to 52. During the past six months, the index has dropped steadily from 57.9 in October to its current level.
The FOMC released its monthly monetary policy release on Wednesday, April 29. The committee reaffirmed its current policy. The release stated, "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term."
Investors have wondered during the past several months whether the Federal Reserve will begin raising interest rates as early as June 2015. However, after this latest round of economic reports, many investors believe that the federal funds rate will remain at its current level through the middle of the year.
The economic news caused investors to sell U.S. Treasury bonds. The 10-year Treasury yield rose to a high of 2.12% in early Friday morning trading. This is the highest yield since March 13.
The 10-year Treasury note yield finished the week of 4/27 at 2.12% while the 30-year Treasury note yield finished the week at 2.83%.
CDs and Mortgages - Interest Rates Increase Slightly
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, April 30. The results showed average fixed mortgage rates increasing slightly on mixed economic reports.
The 30-year fixed rate mortgage averaged 3.68% this week. This is a slight increase from last week when it averaged 3.65%. Last year at this time, the 30-year fixed rate mortgage averaged 4.29%.
This week, the 15-year fixed rate mortgage averaged 2.94%. This is up slightly from last week when it averaged 2.92%. One year ago, the 15-year fixed rate mortgage averaged 3.38%.
"Mortgage rates were up slightly following a week of mixed economic releases," said Len Kiefer, Deputy Chief Economist at Freddie Mac. "Real GDP grew at a paltry 0.2% annualized rate in the first quarter of 2015, well below expectations. However, the National Association of Realtors' pending home sales index rose 1.1% in March for the third consecutive month. The S&P/Case-Shiller National House Price Index also rose 5% in February on a yearly basis."
The money market fund finished the week of 4/27 at 0.4%. The 1-year CD finished at 0.6%.
_____________________________Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
The Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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