San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-21
BUYING HOME
LIKE BUYING
ANYTH|NGEL5E
1t Must Be Paid For In
Money, Sooner or
Later.
MANY GOOD PL ANS
Building and Loan Asso-
Citations Offer Ready
Aid.
MANY GOOD PLANS

When man decides that he needs
a hat, for instance, some Two or three
months after his wife has decided
the same thing. he realizes that he
must finance the hat. usually 70 the
extent of a payment down Of 100 per
cent of its cost or payment in full on
the first of the month if he IS using
his credit.
Still, there are some people who
seem to have the idea that there are
ways of securing n home with no
money at all. There are some people,
even, who seem TO think that n good
Job is all that is necessary and that
no preliminary saving or accumula-
ton of funds is essential on their
part.
However. buying home is just
like buying anything else. Sooner OF
later it is 10 be paid for, and if bank
or firm is induced TO pay for the
house in place of the prospective own
or, they must be paid for their serT.
ices and for the use of their money.
Thus there have grown up several dit
ferent methods of aiding prospective
home owners 10 finance their homes.
The following are simply outlines of
few of the methods which have
proved TO be most practicable and
most helpful.
There is a widespread and keen
desire on the part of practically
every large bank, real estate organiza-
ton and other institutions, 10 give
every possible aid TO the man or wonl-
an who wishes to secure his own
home. It is a matter of common
knowledge that home owners are, in
general, the kind Of people We like to
have as ncighbors, and the type Of
people who are Uncle Sans best citi-
zeES.
Building and Loan Plan.
Building AMI loan associations
have long been rendering splendid
and increasing servire to builders.
Their plan is usually very fair and
efficient, the amount of money which
they have at their disposal depends,
of course, on supply and demand
Their supply is. in the main, de-
pendent on people who use the asso-
Citations as savings banks. This money
supply is thus very sensitive TO gen
eral business conditions. Right now,
owing TO both 4 diminishing influx
OF money and excessive demands from
builders some building loan associa-
tons are temporarily unable to meet
all their demands for building money.
Many. Of them are placing their ap-
plications on waiting list. which
means more delay in getting the
money.
II is mutual. cooperative finan-
.cidl institution chartered by the state
and composed Of persons who asso-
ciate themselves together for their
mutual financial advantage.
The members save money togethe-.
= They lend their money to each
other.
They divide their profits with each
other.
They work together to help each
other acquire homes and to build
M the community in which they live.
They provide for saving money usU.
ally squanGere!: an easy way 10 Sc
cure a home, funds for the children's
education. capital - use in business.
ard a reserve fund for old age or ad-
verSitv.
Unfortunately. these funds are, at
the present time, very limited, and
the prospective home owner must
LOOK further for available funds today.
Insurance Company Funds.
Home building throughout the
country, has been greatly stimulated
by the large fund which has been
set aside by tbs metropolitan Life
Insurance Company TO relieve the
shortage OF homes caused by the war.
Ihey have set aside a fund of So
100000 to be put into modest homes
and apartments Throughout the couo-
try. More than 1900 new homes have
already been created in this way. In
the district surrounding Chicago
more than S2,000.000 has been put into
900 new homes and apartments. ami
rlght now new housing construction
is being financed in this territory at
the rate Of about 200 new homes per
month. Anyone who wishes to build
and whose security meets the require
ments, can borrow money from this
fund on the following plan:
!. Joan-Ip tn one-half Of com
Dlned value OF land net cost OF build
ing.
.. Payments-3 per cent Of nrinci.
pal, plus interest. ssemi-annuaIv.
3. INTEREST," IL per cent.
4. Term Of Loan-1J years. (Nsv
be prepaid after three years L Dor.
rover desires)
.. security-First mortgage on the
Example-Value Of lot......s1.J01
Cost OF house ...,...... S.Jlg
$1,000
Loan--(50 per cent for i
SealJ '''''...... J.UyJ
In many cases il is necessary In
addition TO the above. for the borrower
TO receive more aid than is given hii1
in the first mortgage loan. In suc1
cases this loan can usually be supple.
me1ted by a second mortgage loan for
an additional % per cent of the cost
OF his house, plus the value of the
!and. In many cases this % per cent
Is increased until it is almost equal
when added TO the first mortgage
loan, to the cost of the building.
second mortgages are, of course
expensive, because the security is not
SO good, in view Of the fact that hold.
erS OF second mortgages are obliged t,
take back seat for the holders of tho
ilrSt mortgage. This means that the
nome builder is required TO nay a
Hlgher interest rate on the second
mortgage loan and a higher rate Of
commission. The average second mort.
gage interest rate at present is az
proximately Z per cent.
Practically every bank, realtor
and contractor or builder has its owl
method of financing homes. 1t i
simply question Of the use Of graz
matter on the part of the prosperity,
home owner, to investigate the fiel;