Friday, December 16, 2011

What interest rate will the Diocese of Rockford charge St. James for its building project?

I have hear the rate will be 6.5%.  This seems incredible high.  Below is the prime rate, for last year and the current year it has been 3.25%.  At 6.5% the diocese would be charging prime plus 3.25%.  That is twice the prime rate.

See the posting regarding debt costs for parishes in the Joliet Diocese (http://boonecountycatholics.blogspot.com/2011/12/joliet-dioceses-audit-shows-exact-terms.html).  Joliet Diocese interest rates approximately 6.5% occurred only in 2004 and 2005.  Since 2009 interest rates of 5.4% or lower were granted on Joliet parish building debt.

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Above interest rate from:  http://www.bankrate.com/rates/interest-rates/prime-rate.aspx?ec_id=m1014707

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