© 2022 WFAE
90.7 Charlotte 93.7 Southern Pines 90.3 Hickory 106.1 Laurinburg
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

NC Treasurer Says Refinancing Bonds Could Save State $50 Million

State Treasurer Dale Folwell
North Carolina State Government
/

North Carolina's treasurer has been given the green light to sell up to $450 million in new bonds.  

The proceeds will not be used to build roads or schools, but to pay off other outstanding state debt.

Bonds are like a home mortgage. Someone loans you the money upfront and you pay them back overtime with interest. Just how much is often determined by the prevailing interest rate at the time of the sale.

And, like a mortgage, if you pay the principal back early, you save money by avoiding some of the interest owed.

This is what North Carolina Treasurer Dale Folwell is trying to take advantage of.

“When interest rates decline, many decide to refinance the mortgage on their house," Folwell said in a statement. "The state is taking this opportunity to do the same,”

The Fed is expected to raise interest rates at some point this year. But just when is still a question. By selling these bonds sometime in July and using the proceeds to pay off other bonds early, Folwell says the state could save more than $50 million.

Tom Bullock decided to trade the khaki clad masses and traffic of Washington DC for Charlotte in 2014. Before joining WFAE, Tom spent 15 years working for NPR. Over that time he served as everything from an intern to senior producer of NPR’s Election Unit. Tom also spent five years as the senior producer of NPR’s Foreign Desk where he produced and reported from Iraq, Afghanistan, Yemen, Haiti, Egypt, Libya, Lebanon among others. Tom is looking forward to finally convincing his young daughter, Charlotte, that her new hometown was not, in fact, named after her.