The Washington times., 1925-04-30
SAVING NEEDED
To PAY FIRST
MORTGAGES
Often Overlooked by Home
Buyers-8anks Ready to.
Help Thrifty
BY RICHARD HATTON

Hundreds of families are facing
the question of interest and reduc-
ton payments today upon first
mortgages on their homes.
The vital question is in regard
70 the bank account. Is the money
there to meet the payment?
The building of homes for sale
IN Washington upon a large scale
began with the great influx Of peo-
pie consequent upon the war activi-
ties of the Government. Thousands
upon thousands of workers HOeked
to washington. It is still easy TO
| recall the hardshlps cue to a lack
Of housing facilities. Living accom-
modations were hard to obtain at
any price.
Then came the knowledge that.
the war and the expansion of Gov
eminent activities consequent upon
the American effort must inevitably
result in a Washington that could
never return to the small city class
of pre-War days. That it must not
only hold the war influx, but that
it must prepare to-. house an ever
increasing population:
IT was after the war emergency
had passed and building operations
again became possible that Wash.
ington real estate operators and IN
vestors began the gigantic task Of
Catching up with the present and
preparing for the. future. It was
then that the great groups of new
homes were begun. The building
Of these new homes is still in prog
ress and the demand for them per-
sists-
TI,;sf ard Saving
.sIt is easy to own a home" say
the realtors, and they are right. A
small payment down., a second
mortgage and a first mortgage will
do the trick. It is like paying
rent and, in the end, when the
second mortgage is paid off and
the first mortgage is paid off, there
is the satisfaction and the safety
of ownership. But the whole prop
osition, to be carried through sue
cessfulIy, requires more than the
simple desire to own home. Care
In expenditures is necessary for
the man of small means, and, above
all. thrift and saving are required.
When the rush came with the
war days, and was continued after
the war the construction of homes,
absolutely necessary housing facili-
ties. was made possible by the
generous cooperation of the finan-
administrations 0f the city. These
stepped into the breach and sup
piled the funds required to- carry
on the tremendous building opera
lions The bankers Of Washington
believed in the future, and they
backed expansion with the funds
at their disposal. Thus the homes
were built.
Those who have purchased homes
upon the small initial payment and
the two-mortgage plan, IL they
have been wise and have not met
with unexpected misfortune are
paying off, month by month. Ac-
cording to records, the second
shortages, in most instances, are
sbeing taken care OF, both interest
anT reduction payments. So far as
the second mortgages are con-
cerned. a majority Of home buyers.
are meeting their obligations
satisfactorily. But, in the offing,
looms the first mortgage. That,
also. must be taken care Of, or
much Of the initial effort on the
part of the home purchaser will be.
wasted. Here, once more, the
banks come to the front to save
the situation. But the bank can,
not act alone, nor can it provide
for the careless and the short
sighted.
Interest and Renewal.
AS pointed out today by
prominent Washington banker, one
who lauded the desire and the eff
fort to own a home, many people,
while taking care of their second
mortgage payments, are overlook
ing the important fact that the
time will come when, 1t will be
necessary to meet the interest upon
the first mortgage, which is not
paid monthly, when it will be
and when it will be necessary to
produce sufficient ready cash to
make secure the purchase after the
second mortgage is entirely clearn-
ed off.
Unless there is available a fund
outside of the regular wage or
salary there is only one possible
way in which provision may be
made against the time Of meeting
the first mortgage. This is through
systematic saving. 1t is il this
that the banks, once more, offer
their assistance to the home-buyer.
The savings departments of the
District of Columbia banks make
special provision for handling even
small savings accounts, and they
pay an attractive interest upon
these accounts. Every effort is
made TO assist those who are as
sisting themselves by setting aside
l. +