Midway through life, Mary and Dan found themselves without a viable plan for their estate after their death. They had written wills many years before, but those wills no longer accurately reflected what their financial and life situations looked like. Not only were their personal lives drastically different from when they were first married, but they also now owned a successful small business as well. If they were to die, what they would leave behind would not at all reflect the impact that they wanted to have. In fact, most of their assets would probably go to distant relatives or the state because neither of them had the right provisions in their wills.
Sound familiar? Mary and Dan's story is not unique. Chances are, you or someone you know is in this exact same position. You want the assets that you leave behind to make a difference, but you don't have a plan in place to make sure that it happens.
Thankfully, that can change. Mary and Dan rewrote their wills. But not only that, they made sure that, this time around, they included in their wills what was most important to them. They partnered with the Church of the Nazarene Foundation and made sure that part of their money was going where the Lord wanted it to go, in this case to a ministry that was close to their heart.
So I would encourage you--Don't wait. If your will does not reflect the legacy that you want to leave behind, contact your lawyer and make those changes today. Create an estate plan that will benefit others for years to come.
To read Mary and Dan's full story, click here. If you have questions about including charitable gifts in your will, feel free to reach out to us at (913) 577-2983 orinfo@nazarenefoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
PERSONAL PLANNER
Chronic Illness - Care of Your Person
If you have a chronic illness, your personal planning will need to involve careful consideration of your condition. Many Americans experience ALS disease, Alzheimer's,
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Personal Planner
Chronic Illness - Care of Your Person
If you have a chronic illness, your personal planning will need to involve careful consideration of your condition. Many Americans experience ALS disease, Alzheimer's, Huntington's disease, Parkinson's disease, multiple sclerosis (MS) or other types of chronic diseases.
If you or a loved one has one of these conditions, it is important to communicate with your attorney and other advisors about your condition. There are specific planning options both during life and for your testamentary plan that should be considered.
ALS (Lou Gehrig's disease) is a disease that progressively affects a person's ability to control muscle movement. Symptoms include muscle twitching and cramping. Most ALS victims will eventually need a ventilator for breathing, but often will be quite clear-headed during their lifetime.
Alzheimer's is a disease with a progressive reduction in mental capacity. Mild Alzheimer's may be identified by memory lapse and forgetfulness. As Alzheimer's progresses, the individual begins to lose speech facility, forgets to follow normal personal cleanliness habits and loses control. Often, the Alzheimer's sufferer eventually loses the ability to recognize family members and other loved ones.
Huntington's disease is an inherited disorder. The person with Huntington's disease may have great difficulty with coordination and eventually will suffer from dementia and require full-time care.
Parkinson's disease is a disorder of the nervous system. It can lead to progressive deterioration of both the physical body and mental capabilities. Because there is great variation with the disease, some individuals with treatment are able to live reasonably long lives.
Multiple sclerosis (MS) is also a disorder of the nervous system. There is progressive damage to nerve fibers that leads to physical and mental disability. MS may be fairly moderate at first but tends to lead to attacks that can cause progressive deterioration. MS may range from fairly mild to quite severe and very debilitating.
These five and other chronic diseases are all unique and different. Some afflict the body and others reduce the capabilities of the mind. For example, Alzheimer's has greater impact on mental ability, while ALS victims are often suffering in body but may be quite clear in mind.
Your attorney and other advisors need to understand the conditions sufficiently well so that your documents and plans reflect your particular circumstance.
The principal documents for any chronic illness are a durable power of attorney for healthcare, a living will and a HIPAA release. In many states, the durable power of attorney for healthcare and living will are combined into one document described as an advance directive.
Durable Power of Attorney for Healthcare
If you have a chronic illness, particularly one that leads to loss of mental capacity, it is very important to have a designated person who can make medical decisions for you. In the event that you are unable to reason or communicate, your designated advisor must discuss your medical care with doctors and hospital staff.
A durable power of attorney for healthcare allows you to designate a trusted person to speak to the doctors on your behalf. This power in some states is a separate document. In others, it is the first portion of an advance directive. Many states refer to the person holding the durable power of attorney as your "healthcare proxy."
Regardless of the form of the document or the name of your agent, this person is qualified to make your medical decisions if required.
Whom Should You Appoint?
For a person with a chronic illness, this can be a challenging decision. You would like to select someone who understands your medical condition and your preferences about care. This could be a family member or friend.
Adult children are often selected, but may experience great emotional trauma in making an end-of-life decision. A friend may be a good choice if you do not have a child who feels willing or emotionally capable of making those decisions.
Generally, you will select a healthcare proxy agent and a successor. It is usually best not to select two persons as your proxy agent—they might disagree at a critical time while you are in need of an immediate decision.
Living Will
A person with chronic illness needs both a healthcare proxy agent and a living will. Your healthcare proxy agent can make decisions regarding your care, even if you are not near death. The function of the living will is to describe your preferences for care if you are potentially in your last weeks or days of life.
The advance of medical science has enabled doctors to keep people alive for extended periods of time, even if there is virtually no possibility of recovery. If you are in this circumstance, your living will provides guidance to your doctors.
For example, the living will can discuss whether or not heroic measures will be taken to sustain your life. If you have an irreversible condition with no chance of recovery, the living will also specifies whether nutrition and hydration will be maintained.
If you suffer from one of the chronic illnesses that affects mental capacity, it may be important for you to sign your living will before you have mental deterioration. Many Alzheimer's patients and other individuals with great mental deterioration are no longer capable of signing a living will.
Health Insurance Portability and Accountability Act (HIPAA)
In 1996, Congress passed the Health Insurance Portability and Accountability Act. HIPAA was designed to protect your rights to medical information. Your doctor and other medical providers will frequently acquire extensive background information and treatment information for your chronic illness. Under the HIPAA rules, there are safeguards to protect your personal medical information. A doctor, medical center, or other provider may not disclose this information, particularly to someone who will use it for marketing or similar purposes.
However, you may wish to have your medical information released to your professional advisors so they can make appropriate decisions for you. In order to receive this information, your healthcare proxy must have a formal release from you.
The HIPAA release, which will be in writing, should describe the health information that may be released to the person. It may provide a general list of medical centers or providers or could have an open-ended release for any hospital or medical provider and may include a termination date. After you sign your HIPAA release, you can always revoke that release and sign a new one.
Many states have specific forms for advance directives, living wills, or durable powers of attorney for healthcare. You will want to be certain that you have signed the correct form for your state.SAVVY LIVING
How to Reduce Your Medication Costs
Can you recommend any tips to help me save on my medication costs? I currently take five different prescription medications that are very expensive even with insurance.
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Savvy Living
How to Reduce Your Medication Costs
Can you recommend any tips to help me save on my medication costs? I currently take five different prescription medications that are very expensive even with insurance.
There are actually a variety of ways you can reduce your out-of-pocket medication expenses without sacrificing quality. Here are a few strategies that can help, whether you are covered by employer-based health insurance, a health plan on the individual marketplace or a private Medicare Part D drug policy.
Know your insurance formulary rules: Most drug plans today have formularies (lists of medications they cover) that place drugs into different "tiers." Drugs in each tier have a different cost. A drug in a lower tier will generally cost you less than a drug in a higher tier, and higher tier drugs may require you to get permission or try another medication first before you can use it.
To get a copy of your plan's formulary, visit your drug plan's website or call the 800 number on the back of your insurance card. Once you have this information, share it with your doctor so that he or she can either prescribe you medications in the lower-cost tiers or help you get coverage approval from your insurer if you need a more expensive drug.
You also need to find out if your drug plan offers preferred pharmacies or offers a mail-order service. Buying your meds from these sources can also save you some money.
Switch to generics: Ask your doctor or pharmacist if the medications you're taking are available in a generic form or a less expensive brand-name drug. About 75% of all premium drugs on the market today have a lower-cost alternative. Switching could save you between 20% and 90%.
Pay for generics yourself: Most generic medications cost less if you don't use your insurance. For example, chains like Target and Walmart offer discount-drug programs (these programs will not work in conjunction with your insurance) that sell generics for as little as $4 for a 30-day supply and $10 for a 90-day supply, while some insurance companies charge a $10 copayment for a 30-day supply.
Ask your pharmacy if they offer a discount-drug program and compare costs with your insurance plan. You can also find free drug discount cards online at sites likeNeedyMeds.org, which can be used at most U.S. pharmacies.
Split your pills: Ask your doctor if the pills you're taking can be cut in half. Pill splitting allows you to get two months' worth of medicine for the price of one. If you do this, you'll need to get a prescription from your doctor for twice the dosage you need.
Try over-the-counter drugs: Ask your doctor if there is a nonprescription medication that could work as effectively as a more expensive prescription drug. Many over-the-counter drugs for common conditions such as pain-relievers, allergy medications, antifungals and cold-and-cough medicines were once prescription only. But be aware that if you have a flexible spending account or a health savings account, you'll need to get a doctor's prescription for the over-the-counter drugs (except insulin) to get reimbursed.
Shop around: Drug prices can vary widely from drugstore to drugstore, so it's definitely worth your time to compare prices at different pharmacies. The web tool at GoodRX.comwill help you find prices on all brand name and generic drugs at virtually every U.S. pharmacy.
Search for drug assistance programs: If your income is limited, you can probably get help through drug assistance programs offered through pharmaceutical companies, government agencies and charitable organizations. To find these types of programs visitBenefitsCheckUp.org, a comprehensive website that will help you locate the programs for which you may be eligible and will show you how to apply for them.
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.YOUR PLAN
Capital Gains Tax Bypassed
Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities.
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Tax-Free Sale
Howard and Lynn were age 55 when they purchased some land outside of town. They thought it would be a good investment that they could later sell for a higher price.
Over the years, development from town has moved toward the property and their land is now next to a large commercial store. They now rent the property to the commercial store for overflow parking.
Howard: We have owned this property for over 10 years. It has been a good investment and increased in value. We have received just enough rental income in the last few years to pay the taxes. However, we now would like to sell.
Lynn: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.
The good news is that Howard and Lynn were able to create a special trust called a charitable remainder unitrust and receive three very nice benefits.
Bypass capital gain
Increase income
Charitable deduction
Howard: We are delighted with our unitrust. With our unitrust, we saved about $36,000 in capital gainsTAX
and almost $18,000 inINCOME TAXES. That is over $54,000 in tax savings!Lynn: Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. This increased income is one of my favorite parts of the plan.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. SinceYOUR
unitrust benefits may be different, you may want to click here to view a color example of your benefits.WASHINGTON NEWSBack to School Tax Benefits
As students return to colleges and universities this month, the IRS summarized the tax benefits available to students in IR-2015-102. Two of the primary credits are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
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Washington News
Back to School Tax Benefits
As students return to colleges and universities this month, the IRS summarized the tax benefits available to students in IR-2015-102. Two of the primary credits are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
A taxpayer may claim one or the other credit for a particular student. You must file IRS Form 140 or 140A and also Form 8863, Education Credits. The student must attend an eligible college, university or vocational school.
A college or university must give each student IRS Form 1098-T by January 31 each year (however, in 2016 the due date is February 1 because the previous day is a Sunday). A taxpayer will use Form 1098-T and refer to the instructions for Form 8863 to calculate the credit amount. Upper-income taxpayers may have limited benefits from these education credits.
The American Opportunity Tax Credit is a maximum of $2,500 per student and there are several requirements.
1. Maximum Duration – The credit may be claimed for up to four tax years per student.
2. Student – A student may not have completed four years of post-secondary education prior to 2015.
3. Qualified – The credit is available for payments of tuition and fees. Room and board amounts are not covered.
4. Amount – The credit is 100% of the first $2,000 in qualified expenditures and 25% of the next $2,000. An expenditure of $4,000 may produce qualification for the full $2,500 credit.
5. Refundable – Up to 40% of the credit is refundable. If a person pays no federal income tax, it is still possible to receive a $1,000 refund.
6. Limits for Upper-income Taxpayers – The AOTC is phased out for single persons with modified adjusted gross income (MAGI) over $80,000 and couples with MAGI over $160,000.
The Lifetime Learning Credit is $2,000 per tax return (not per student). It applies to both graduate and undergraduate education. None of the LLC is refundable.
1. Qualified – The LLC is available for payment of tuition and fees.
2. Amount – The LLC equals 20% of qualified expenditures. A tuition payment of $10,000 times 20% produces the maximum $2,000 credit.
3. Phaseout – Individuals with modified adjusted gross income (MAGI) over $55,000 for single persons or $110,000 for married couples will be subjected to the phaseout rule.
There also are other helpful educational benefit options. Scholarships and grants are generally tax-free to the extent that they cover tuition and books. Scholarships for room and board are taxable.
If a student has loans, there is an interest deduction of up to $2,500 per year. Finally, parents may choose to fund a Sec. 529 plan. A parent may give up to five annual gift exclusion amounts in one year. With the current $14,000 annual gift exclusion, each donor may transfer up to $70,000 to a Sec. 529 plan. The plan permits tax-free growth and tax-free distribution to a student for qualified education expenses.FINANCES:
Stocks - Walmart Reports Lowered Earnings
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Walmart Reports Lowered Earnings
Wal-Mart Stores, Inc. (WMT) released its most recent quarterly earnings report on Tuesday, August 18. The world's largest retailer missed earnings estimates but beat revenue forecasts.
The company reported quarterly revenues of $120.2 billion, which beat analyst forecasts. However, this represents only a 0.1% increase from the same quarter last year, when the company reported revenue of $120.1 billion.
"We're pleased that the investments we've made are helping to improve our business," said Wal-Mart Stores, Inc. CEO Doug McMillon. "Even if it's not as fast as we would like, the fundamentals of serving our customers are consistently improving, and it's reflected in our comps and revenue growth. In this case, our desired changes require investments, which are pressuring earnings this year. We're confident that our strategic plan will create robust sustainable growth for shareholder returns over time."
Walmart reported net income of $3.48 billion, down 15% from a year ago. Earnings per share were $1.08, down from $1.27 last year.
Earlier this year the company responded to pressure from activists by raising its minimum hourly wage to $9.00 per hour, with plans to increase it by a dollar next year. Walmart has also begun to increase employee hours in an effort to reduce long check-out lines. Each of these moves has had a predictably negative effect on the company's bottom line. The low-cost leader will need to find ways to cut supplier costs to offset these wage increases.
Wal-Mart Stores, Inc. (WMT) shares ended the week at $66.54, down 7.4% for the week.
Home Depot Puts Together Successful Quarter
The Home Depot, Inc. (HD) announced its latest quarterly financial results on Tuesday, August 18. The home improvement retailer reported earnings that surpassed Wall Street estimates.
The company reported that revenue during the quarter increased 4.3% to $24.83 billion, better than the forecasted $24.66 billion. Driving the revenue gains was a 4.2% increase in same-store sales.
"We were pleased with this quarter's results," said Home Depot Chairman, CEO and President Craig Menear. "We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market."
Home Depot reported net income during the quarter of $2.23 billion or $1.73 per share. This was a significant improvement compared to the same period last year when net income was $2.05 billion or $1.52 per share.
This past quarter was Home Depot's sixth consecutive quarter of sales growth, which reflects the improving housing market and increased consumer confidence. The company said that its average receipt during the quarter increased 1.7% while the number of transactions increased 2.6%. Especially significant were the number of receipts over $900, which rose 6.3%. Following the earnings release, Home Depot's stock price reached an all-time high of $123.80.
The Home Depot, Inc. (HD) shares ended the week at $116.16, down 2.5% for the week.
Salesforce Reports Strong Earnings
Salesforce.com, Inc. (CRM), a cloud computing company specializing in customer relationship management software, announced its second quarter results on Thursday, August 20. The company's results were better than pre-release estimates, though some analysts have reservations about the company's pace of growth.
Salesforce reported that revenue during the quarter increased 24% to $1.63 billion. This was better than the $1.6 billion Wall Street estimate.
"Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range," said Salesforce Chairman and CEO Marc Benioff. "That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue."
Earnings per share for the quarter were $0.19 per share. This barely beat estimates of $0.18 per share.
As CEO Benioff indicated in his earnings release statement, Salesforce raised its full-year guidance for the year. The company now expects full-year revenue of $6.6 billion to $6.625 billion compared to Wall Street estimates of $6.55 billion. Earnings per share is now forecasted to be between $0.70 and $0.72 compared to estimates of $0.71. Despite this good news, some analysts are concerned about the sluggish growth of Salesforce's cloud business, which is growing at a 24% pace compared to Amazon and Oracle's cloud business growth of 80% and 40%, respectively.
Salesforce.com, Inc. (CRM) shares ended the week at $69.15, down 4.7% for the week.
The Dow started the week of 8/17 at 17,473 and closed at 16,460 on 8/21. The S&P 500 started the week at 2,090 and closed at 1,971. The NASDAQ started the week at 5,032 and closed at 4,706.
Walmart Reports Lowered Earnings
Wal-Mart Stores, Inc. (WMT) released its most recent quarterly earnings report on Tuesday, August 18. The world's largest retailer missed earnings estimates but beat revenue forecasts.
The company reported quarterly revenues of $120.2 billion, which beat analyst forecasts. However, this represents only a 0.1% increase from the same quarter last year, when the company reported revenue of $120.1 billion.
"We're pleased that the investments we've made are helping to improve our business," said Wal-Mart Stores, Inc. CEO Doug McMillon. "Even if it's not as fast as we would like, the fundamentals of serving our customers are consistently improving, and it's reflected in our comps and revenue growth. In this case, our desired changes require investments, which are pressuring earnings this year. We're confident that our strategic plan will create robust sustainable growth for shareholder returns over time."
Walmart reported net income of $3.48 billion, down 15% from a year ago. Earnings per share were $1.08, down from $1.27 last year.
Earlier this year the company responded to pressure from activists by raising its minimum hourly wage to $9.00 per hour, with plans to increase it by a dollar next year. Walmart has also begun to increase employee hours in an effort to reduce long check-out lines. Each of these moves has had a predictably negative effect on the company's bottom line. The low-cost leader will need to find ways to cut supplier costs to offset these wage increases.
Wal-Mart Stores, Inc. (WMT) shares ended the week at $66.54, down 7.4% for the week.
Home Depot Puts Together Successful Quarter
The Home Depot, Inc. (HD) announced its latest quarterly financial results on Tuesday, August 18. The home improvement retailer reported earnings that surpassed Wall Street estimates.
The company reported that revenue during the quarter increased 4.3% to $24.83 billion, better than the forecasted $24.66 billion. Driving the revenue gains was a 4.2% increase in same-store sales.
"We were pleased with this quarter's results," said Home Depot Chairman, CEO and President Craig Menear. "We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market."
Home Depot reported net income during the quarter of $2.23 billion or $1.73 per share. This was a significant improvement compared to the same period last year when net income was $2.05 billion or $1.52 per share.
This past quarter was Home Depot's sixth consecutive quarter of sales growth, which reflects the improving housing market and increased consumer confidence. The company said that its average receipt during the quarter increased 1.7% while the number of transactions increased 2.6%. Especially significant were the number of receipts over $900, which rose 6.3%. Following the earnings release, Home Depot's stock price reached an all-time high of $123.80.
The Home Depot, Inc. (HD) shares ended the week at $116.16, down 2.5% for the week.
Salesforce Reports Strong Earnings
Salesforce.com, Inc. (CRM), a cloud computing company specializing in customer relationship management software, announced its second quarter results on Thursday, August 20. The company's results were better than pre-release estimates, though some analysts have reservations about the company's pace of growth.
Salesforce reported that revenue during the quarter increased 24% to $1.63 billion. This was better than the $1.6 billion Wall Street estimate.
"Salesforce has now blown past the $6.5 billion annual revenue run rate faster than any other enterprise software company, and we are once again raising our fiscal year 2016 revenue guidance to $6.625 billion at the high end of our range," said Salesforce Chairman and CEO Marc Benioff. "That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue."
Earnings per share for the quarter were $0.19 per share. This barely beat estimates of $0.18 per share.
As CEO Benioff indicated in his earnings release statement, Salesforce raised its full-year guidance for the year. The company now expects full-year revenue of $6.6 billion to $6.625 billion compared to Wall Street estimates of $6.55 billion. Earnings per share is now forecasted to be between $0.70 and $0.72 compared to estimates of $0.71. Despite this good news, some analysts are concerned about the sluggish growth of Salesforce's cloud business, which is growing at a 24% pace compared to Amazon and Oracle's cloud business growth of 80% and 40%, respectively.
Salesforce.com, Inc. (CRM) shares ended the week at $69.15, down 4.7% for the week.
The Dow started the week of 8/17 at 17,473 and closed at 16,460 on 8/21. The S&P 500 started the week at 2,090 and closed at 1,971. The NASDAQ started the week at 5,032 and closed at 4,706.
Bonds - Treasuries Fall in Response to Fed Minutes
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Treasuries Fall in Response to Fed Minutes
Treasury bond yields fell during the week of August 17 as prices rose in reaction to the Federal Reserve's Wednesday, August 19 release of its July policy meeting minutes. The minutes left analysts divided on whether the Federal Reserve will implement a September rate hike.
On Wednesday the Federal Reserve released the minutes from its July 28-29 Federal Open Market Committee meeting. The minutes reveal a divide among committee members. Some members believe the economy is not yet ready for an interest rate hike while others think the time has come to stop talking and raise rates.
"A lot of credibility will be lost if they don't move this year," said Richard Fisher, recently retired president of the Federal Reserve Bank of Dallas. If the Federal Reserve chooses not to move in September, it will have one more chance to raise rates this year at its December meeting. However, some analysts believe that the end of the year is a less-than-ideal time to raise rates, due to market volatility.
The uncertainty over the status of interest rates has been driven by several factors including concern over the state of the global economy, specifically China's recent devaluation of their currency, and lower oil prices. This lack of confidence in the overall state of the economy has caused Treasury bond prices to rise, thus driving down yields. "Investors are seeking a haven as the global economy is struggling," said Voya Investment Management Chief Market Strategist Douglas Coté.
The 10-year Treasury note yield finished the week of 8/17 at 2.05% while the 30-year Treasury note yield finished the week at 2.75%.
Treasuries Fall in Response to Fed Minutes
Treasury bond yields fell during the week of August 17 as prices rose in reaction to the Federal Reserve's Wednesday, August 19 release of its July policy meeting minutes. The minutes left analysts divided on whether the Federal Reserve will implement a September rate hike.
On Wednesday the Federal Reserve released the minutes from its July 28-29 Federal Open Market Committee meeting. The minutes reveal a divide among committee members. Some members believe the economy is not yet ready for an interest rate hike while others think the time has come to stop talking and raise rates.
"A lot of credibility will be lost if they don't move this year," said Richard Fisher, recently retired president of the Federal Reserve Bank of Dallas. If the Federal Reserve chooses not to move in September, it will have one more chance to raise rates this year at its December meeting. However, some analysts believe that the end of the year is a less-than-ideal time to raise rates, due to market volatility.
The uncertainty over the status of interest rates has been driven by several factors including concern over the state of the global economy, specifically China's recent devaluation of their currency, and lower oil prices. This lack of confidence in the overall state of the economy has caused Treasury bond prices to rise, thus driving down yields. "Investors are seeking a haven as the global economy is struggling," said Voya Investment Management Chief Market Strategist Douglas Coté.
The 10-year Treasury note yield finished the week of 8/17 at 2.05% while the 30-year Treasury note yield finished the week at 2.75%.
CDs and Mortgages - Interest Rates Show Little Movement
Read MoreInterest Rates Show Little Movement
Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, August 20. The report showed interest rates remaining mostly unchanged from the prior week.
The 30-year fixed rate mortgage averaged 3.93% this week. This represents a decrease from last week when it averaged 3.94%. Last year at this time, the fixed rate mortgage averaged 4.10%.
This week, the 15-year fixed rate mortgage averaged 3.15%. This is down from last week when it averaged 3.17%. The 15-year fixed rate mortgage averaged 3.23% one year ago.
"There was little movement in financial markets this week as the 30-year fixed mortgage rate remained steady, dropping only 1 basis point to 3.93%," said Sean Becketti, Chief Economist at Freddie Mac. "Overall inflation grew an underwhelming 0.2% year-over-year in July, but core inflation remains steady at 1.8% keeping chances alive for a potential rate hike in September. Housing markets have responded positively to low mortgage rates—the 30-year fixed mortgage rate has been below 4% for five consecutive weeks. The latest NAHB/Wells Fargo Housing Market Index for August 2015 was 61, the highest level in more than nine years. One-unit housing starts in July 2015 jumped to 782,000 units, up 12.8% from June and up 19% from last year. Overall housing markets remain on track for the best year since 2007."
The money market fund finished the week of 8/17 at 0.3%. The 1-year CD finished at 0.6%
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.
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The Global Church of the Nazarene Foundation
Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, August 20. The report showed interest rates remaining mostly unchanged from the prior week.
The 30-year fixed rate mortgage averaged 3.93% this week. This represents a decrease from last week when it averaged 3.94%. Last year at this time, the fixed rate mortgage averaged 4.10%.
This week, the 15-year fixed rate mortgage averaged 3.15%. This is down from last week when it averaged 3.17%. The 15-year fixed rate mortgage averaged 3.23% one year ago.
"There was little movement in financial markets this week as the 30-year fixed mortgage rate remained steady, dropping only 1 basis point to 3.93%," said Sean Becketti, Chief Economist at Freddie Mac. "Overall inflation grew an underwhelming 0.2% year-over-year in July, but core inflation remains steady at 1.8% keeping chances alive for a potential rate hike in September. Housing markets have responded positively to low mortgage rates—the 30-year fixed mortgage rate has been below 4% for five consecutive weeks. The latest NAHB/Wells Fargo Housing Market Index for August 2015 was 61, the highest level in more than nine years. One-unit housing starts in July 2015 jumped to 782,000 units, up 12.8% from June and up 19% from last year. Overall housing markets remain on track for the best year since 2007."
The money market fund finished the week of 8/17 at 0.3%. The 1-year CD finished at 0.6%
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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.
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The Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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