(Host) With interest rates now at some of their lowest levels in years, the state of Vermont is doing something that many consumers are thinking about: refinance some larger loans.
Governor-elect Jim Douglas, in one of his final actions as state treasurer, says the state has decided to refinance some of its long term debt to take advantage of very favorable market conditions:
(Douglas) “What that means is, that because interest rates are now at historic lows we’ve had the opportunity to take advantage of those lower rates and save on our debt service payments. Just as many Vermonters have been refinancing their home mortgages, we have an opportunity to save some interest costs by refunding these bonds. The expected savings over the life of the bonds will be a total of $1.9 million, so that will help us a little bit as we prepare for budgets for the subsequent fiscal years.”
(Host) Douglas says the low interest rates will also benefit the state as it prepares to issue new bonds in the coming weeks.