CHICAGO (ELCA) --The Mission Investment Fund (MIF) of the Evangelical Lutheran Church in America (ELCA) announced new terms for loans to ELCA mission congregations that include a zero-percent interest rate for the first two years and a 2 percent interest rate for the next five years for purchases of vacant sites for future church buildings. The Fund also announced new interest rates on investments offered by the Fund, effective Jan. 1.
"The MIF is mindful that, when a congregation is first organized, any monthly payment represents a significant expense," said Andy Waters, MIF operations director. "A zero-percent loan for two years enables a developing congregation to own property immediately and to have lower expenses as it matures." In addition, Waters said, the 2 percent interest rate for the next five years lowers payments, allowing a congregation to pay off a loan quickly.
The Fund also changed the term for loans to mission congregations for construction of initial church buildings. These loans now have a 3 percent interest rate for seven years, instead of five years, with an amortization schedule of no more than 15 years.
In addition, the term for loans to established ELCA congregations for capital projects has increased to 20 years from five years. Waters said that, instead of having a "balloon payment" due after five years, congregations will have interest-rate reviews at five, 10 and 15 years.
The MIF also announced new interest rates for the adjustable-rate and fixed-rate investments it offers to ELCA congregations and their members and to ELCA-related institutions.
"Funds invested by Mission Investors are used by the MIF to make loans to ELCA congregations," said the Rev. Arnold O. Pierson, MIF vice president for marketing. "Investors in the MIF are truly sharing the faith and helping to build the Lutheran church," he said.
ADJUSTABLE-RATE INVESTMENTS
The interest rates for adjustable-rate Mission Investments from Jan. 1 through June 30, 2003, are:
MissionPlus: 2.0 percent
This investment provides a checkbook which investors can use to write
checks in amounts of $500 or more.
MissionFuture: 2.9 percent
This investment can be purchased by adults for children from birth to
age 16. The investment matures on the young person's 18th birthday.
MissionTerm (unsecured investment obligations issued by the Mission
Investment Fund):
-- 1 year term 1.4 percent
-- 3 year term 2.1 percent
-- 5 year term 2.9 percent
-- 10 year term 3.9 percent
MissionTerm investments held in Traditional or Roth Individual
Retirement Accounts (IRA) or in Coverdell Education Savings Accounts
(CESA): An adjustable-rate MissionTerm investment can be held as a
Traditional or Roth IRA or a CESA with Fifth Third Bank as custodian:
-- 3 year term 2.1 percent
-- 5 year term 2.9 percent
-- 10 year term 3.9 percent
FIXED-RATE INVESTMENTS
Interest rates for the Mission Investment Fund's fixed-rate investments are reviewed monthly. The interest rate that is in effect at the beginning of a term remains in effect throughout the term of an investment. Interest rates for fixed-rate investments, in effect from Jan. 1 through Jan. 31, 2003, are:
MissionTerm and MissionTerm investments held in Traditional or Roth IRAs
or in a CESA:
-- 2 year term 3.0 percent
-- 4 year term 4.0 percent
-- 6 year term 5.0 percent
Nearly 500 MIF loans are currently in effect in the United States, Puerto Rico and the U.S. Virgin Islands. One-third of the ELCA's 10,766 congregations, thousands of individual Lutherans and numerous ELCA-related organizations are investors in the Fund. The ELCA Mission Investment Fund has total assets of nearly $400 million. -- -- --
Mission Investments are securities that are sold only by means of the Offering Circular, which can be obtained from the Mission Investment Fund. Mission Investments are subject to certain risks. See "Risk Factors" following the introduction in the Offering Circular. As securities issued by a non-profit institution, the investments offered by the Mission Investment Fund are not insured by FDIC, SIPC or any federal or state regulatory agency.
EDITORS: Additional information about the ELCA Mission Investment Fund
can be obtained by calling (800) 638-3522, ext. 2943, by sending an
e-mail to mif@elca.org or by accessing http://www.elca.org/ot/mif on the
ELCA Web site.
For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html
- - -
About the Evangelical Lutheran Church in America:
The ELCA is one of the largest Christian denominations in the United States, with 2.8 million members in more than 8,500 worshiping communities across the 50 states and in the Caribbean region. Known as the church of "God's work. Our hands.," the ELCA emphasizes the saving grace of God through faith in Jesus Christ, unity among Christians and service in the world. The ELCA's roots are in the writings of the German church reformer Martin Luther.
For information contact:
Candice Hill Buchbinder
Public Relations Manager
Candice.HillBuchbinder@ELCA.org
