Bonds appeal grows as stocks retreat from peaks
Stocks slide from highs this year yet bonds attract new money. High quality bonds anchor portfolios during stock softness. Buy to hold to maturity to recover principal. Municipal bonds offer tax advantages. Treasuries broaden access. Junk bonds yield high but riskier. Ginnie Maes provide federal backing. In tax-deferred accounts, corporate yields edge Treasuries. Safety around 5 percent is a reasonable goal.
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Refinancing questions answered as rates drop
Experts say even three quarters of a point can justify refi. A $250,000 loan at 7.5% costs $1,748 monthly versus about $1,600 at 6.6%. Calculate total costs, including points and closing fees, and note tax deductibility of points over the loan life. Consider prepayment penalties and balance lender options, brokers, or direct lenders.
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Quicken.com
Rates hit 25 year low as 30 year mortgages fall
Nationally the average rate on 30 year fixed mortgages slid to 6.66 percent from 6.77 percent, the lowest since Freddie Mac began tracking in 1971. The prior low was 6.74 percent in October 1993, with some lenders predicting further declines toward 6 percent. In Lawrence the range was 6.25 to 7.25 percent last week, prompting shoppers to comparison shop.
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Lawrence Area
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