The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-01-15

must be taken care of. Loans so
arranged are usually in this dis
trict made for a term of 3 years on
new properties, assuming that there
have been no radical changes in
valuations or financial conditions,
usually renewed for one, sometimes
two additional terms of three years
each.
Life insurance companies funds
are used to take care of the larger
loans and are pretty generally
placed on the more preferred type
of risks. They are usually for a
longer period, carrying annual
amortization or payments fire.
quently waived until after the ex.
piration of the third year. The
security and manner of payment
by the borrower of what is due
being satisfactory it is almost I'M
heard of thing for them to re-
quire payment of principal, and
even during catastrophe such as
the influenza epidemic with death
claims aggregating many millions
to be paid by them, I know of
several companies who boast of the
fact that they did not cali single
mortgage loan, even during this
time of stress.
During the house shortage brought
about by the World War these large
sources of supply devoted their
special attention to providing funds
to alleviate this condition, and one
very large company with almost a
billion dollars of its admitted assets
employed in mortgage loans prac-
tees its slogan of spreading their
funds among the most people and
where 1t will do the most good.
This naturally means lending to the
individual owner, occupant and pur-
chaser Of his home.
Trust Companies.
A plentiful supply of funds is de-
sired from this source, the com.
panies being desirious of employing
their own funds for investment in
this fund and also the funds belong.
ing to various; estates and trusts
committed to their care and super.
vision. =
A mutual cooperative institution
receiving regular savings Of its
members and paying them higher
than savings bank interest on them
ana in turn lending the funds to
owners desirious Of borrowing.
Those desiring to liquidate their in.
debtedness monthly and to whom
privilege of making voluntary pay.
ments Is attractive this source makes
strong appeal. The growth of
these institutions in this community
has been rapid.
Savings Banks
This Is a source not SO generally
used in this community for the
borrowing of money or mortgage
loans as in other sections Of the
country.
Land contracts, not known in this
section, but in very general use
throughout the Middle West, are
contracts for the purchase Of prop.
erty on payments to be made over
q period, actual conveyance of the
title not taking place until quite q
large percentage of the full pur.
chase price is paid.
New houses sold by onerative
builders where second deed of trust
is taken for deferred payment, the
ahortlzation Is usually confined en-.
tireiy to second trust until it is
lquldated, and then the property
owner Is in position to take adj.
vantage OF the lower rate offered by
insurance companies and the max.
ing OF the payments required by
.nem on a long-term loan is no
narosnlp. the second trust being at
enat Tune out OF the way. mort.
1atlon IS sound principal that
saoulo oe encouraged because it is
vi mutual advantage to both the
borrower and the lender.
II enables the borrower to build
up a SAFE and conservative equity
IN property that will stand him in
good stead in the event of a tenn
porar4 gshrinkage in value.