The Washington times., 1929-01-19
HOME FlNhNCING
OUTLINED IN
!. Z. LECTURE

huilding and loan associations were
given In lecture before the real
estate class at the Y. M. C. A. on
Japnary IA, by G. Clinton James,
attorney-atslaw. Prospective home
buyers win find details of hypo-
ethetical cases to compare with their
own plans and preservation of this
account should prove suitable
reference guide in the future.
Membership in some form Of
building and loan association,
whenever possible. is perhaps the
most satisfactory way in which to
arrange for financing q home. The
study of their record for the past
81 years tustifies the belief that no
man OF ordinary health, ability and
purpose need deprive his family OF
the benefits OF home ownership,
provided his community is served
bye~one of these local cooperative
thrift associations. variously termed
Building and Loan Associations,
Savings and Loan Associations,
Homestead Associations or Cooper.
alive Banks.
Since the inception in 1881 in a
suburb of Philadelphia, they have
grown very rapidly in number and
without supervision or State con.
troll. During the first SO years of
their development, more than 1,O00,.
600 homes have been financed
through them. Their methods of
operation. the lines along which
they have operated and found their
Technology, reflect the wisdom of
those pioneers In each State who
were leaders in the movement.
General Plan
The general plan is ' sound, so
helpful and so safe that building
association movements are today
serving over 10000 600 members.
The total assets of all associations
are now approximately 81, 00O, 00O, 900
citation, since no man can under
stand whole power and force
OF $1,000, 900 .000 They receive money
from members and loan it to those
who want to build or buy homes
or re-finance or purchase real es-
tate-to do this on fair terms and
under particularly convenient re-
payment program.
The returns from the loans are
returned to the members after mod
est operation expenses have been
cared for and after setting aside d
reserve 70 act as q safeguard for
loss.
There are Federal state regu.
lations which protect theopublic and
help to maintain a safe proaF4Fn.
These re :llation had tha~effect OF
keeping selfish and questionable in.
terests out OF this field.
If basic plan Is superior. its eff
forts must be superior. And 80 you
find 1t in this instance No other
form OF financial institution Is pay
ing such high earnings to those i'm
vesting. No other agency offers
such 4 helpful and convenient SER
vice to people seeking home owner
ship. The entire community should
back a movement OF this kind. be-
cause the en- re community is reap
ing great benefit.
How to Start
70 become an investing member
Of q building and loan association,
you can start an account In the as
ISOLATION operating on the perma-
nent plan. which means an associa-
ton that declares 81 dividend each
year, by depositfng ST. up and such
other sums as one may be able to
spare from ms income. II the
serial associa tion IN Wnicn new
series Y started every SIX months 8.
paying back the months that have
elapsed since the series started a.
% eat the f,,ll benefit AZ the earn.
ings il he stays until the series
closes. a slight reduction is made
-. tl,4sa. NM, vv;fl,sIr q j. before the
ss,;as ,s.t,,raa
I'VE adva11faoAs az memhershin
are sanO agvidend IL exennnt from
Essdars1 income tax. al1 divfdends
80 sysa,v,r,f froy,, intansihIe taxes
! s, anec;aI denosits THE ESQ
sis1;cs, hou,aver ravs ner cent ~,
IL ,asesse gross earnings ss a intangible
fsxes. person desiring to borrow
rnnst first make application. his
nronartv il then annraised bv the
assooiafion anpraisers ST an aver.
are cost az about 81. II the loan
s. annroved the oalv expenses he
hears are far examination Of title.
wing the necessary paners Re.
cordina fire insurance. notary fee
ana tax certificate. THE borrower
Il REQUIRED 10 nav hack monthly on
ME- Inan n for each 800 he bor.
rows nne-half Or this amount ID
credited to interest and one.han TO
principal the interest being II the
rate 81 s per cent.
A. Eva,,,,..
For illustration, u person Dor
rows " ,bOO, ms monthly payments
would pc 9zo: Sls.0V Ior interest,"
and $11.5V Tor prlIlcipaI, ne mas an
option of allowing the interest on
stock to mature and TO participate