The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-08
FAMILY LIFE BASIS
OF HOME OWNERSHIP
Charles L. Van Fossen Says Thrift
lhrlves Where Home Is Concerned
---Favors Building and Loan

"oi tSdsois are paying or a part oil
inc race OF their mortgages each monh
in these Institutions. Other mortgage.
usually stay at the face amount and
only interest Is called for. Savings and
loan associations are organized prima :
riiy Tor home owning promotion among
men and women Of small incomes and
have always enjoyed special privileges
from the State and Congress because
OF the emi-philanthropc nature Of their
business. An extract from the savings
ana loan association section OF the
banking law OF this State Is proof OF
emi-phianthropic business. 1t SAYS
that these corporations are formed "for
the purpose OF encouraging industry.
frugslity. homo building. and the saw
ing OF money"
Most savings and loan associations
in this city charge their borrowers fiat
s per cent. interest. The man who
thinks ne knows all about interest
charges Immediately rises up and says:
That IL too high: money can be Dor
rowed at and 81 per cent" II Is
true. II you have At least 40 per cent.
equity to stand back Of the first mort
gage. But most persons have little
money. and tho savings and loan Assn
citation IL the only way for them to get
q start In homo ownership.
Tho association must always have a
frst mortgage. and the borrower usually
pays At the rate Of $40 a month for
each $1,000 borrowed. Five dollars .
month goes to his credit. and ne can
cut down his mortgage periodically
hut IN any case II ne pays persistently
IS Of his $1,000 mortgage, in addition
to the interest. the accumulation Of
IS and the profits will cancel a $1,000
loan In twelve years. The figures are
Five dollars q month for twelve years.
$3.50: profits. $3.50: total. 81. 900. There
IL no mutual association in the city Of
New York and It's environs which pays
less than ~ per cent. dividends q year
on the moneys paid in TO reduce the
mortgage. or the moneys paid in by
investors. for tina. matter.
In the meantime there are no strings
TO the mortgage: II cannot be called
IN. there are no renewal charges TO
pay. Savings and loan association d.
rectors, as a rule. have a great deal
Of the brotherhood OF man In their
makeup. They always want 20 see the
man who applies for a mortgace. Per
sonality counts for a good deal In the
lending Of money by these Institutions
II ono prefers a private loan at any
time no objection Il interposed by the
association. The association gives
credit for the amount paid In toward
reduction and the dividends II has
earned There IL no disposition to
squeeze q borrower.
II he cannot meet his payments at
the time called for IN the mortgage ne
can state his case to the board. Every
opportunity will be given an honest
well-meaning man to keep on his feet
II he has met with temporary reverses
Illness or death In his family. The bor-
rower's payments may be suspended
temporarily. II ne has suYicien. equity
his loan may be adjusted in such man
ner that he gets credit for all the money
paid and the dividends thereon. which
are deducted from the face Of his mort
gage. and he gets q new mortgage for
the reduced amount with only simple
interest to pay.
These are only two Of the options
given by many associations Each case
II decided on its individual merits.
and foreclosure Is the last thing under
taken. no. the frst There are saw
ines and loan associations in the metro
politan district that have made hun
dreds OF mortgage loans during the
last twenty-five years and have no,
foreclosed on one piece Of property
The boards OF directors adjusted the
loans OF borrowers who could not NEE,
their payments In a manner that eased
the borrowers and at the same time did
Justice 10 all the other persons who had
money in these institutions
II IL therefore apparent that . man
purchasing q modest homo for say
5000. having $500 cash. will pay
SOS monthly as rent. He could not rent
As comfortable home for this amount
but one-half OF his payment IL
matchmaking his actual rent $3.50
each month--and at the same time hav-
ing a compelling force behind him to
save each month and reduce his mort
gage.