Henderson daily dispatch., 1946-09-09
Buying Plan
For Homes
Is Changing

SwampScott, Mass, Sept. 9.-The
pattern of paying for home in the
United States has undergone moro
changes i'll the past twenty Yeas
than almost any factor in the eco
nCmic life of the individual, Henry
7. lrr. Baltimore, Maryland, presi-
dent OF the United States Savings
and Loan League. told the Massa-
chuSctts Cooperative Bank Leagues
annual convention here this week.
Mr.. Irr said that the changes
range all the way from the length
of time TO pay off the loan and the
interest rate, to the place where
people borrow their money. Citing
the figures on total mortgages re-
corded for amounts under $4,000,
he said that in the past five years
the reliance of hOme-sceking fam
iiicS on their local savings and loa.
associations and cooperative banks
for credit had increased from 3l.9
per cent to 35 per cent. He was
comparing the ratios of savings and
loan financing 10 total home mort
gage credit advanced by all leaders
for the first six months of this year
and for the first half of 1871. There
are no comparable statistics for 1926
and 1916. he pointed out, but indi-
Gated that this year during the first
six months alone these specialized
hOmc-nwncr credit Institutions have
made Sl.6I2. 200. 900 in loans. where
as in 1926 their full years total Of
lending was only Sl.945, 100000.
AT least third of the genera
ton born between 1910 and 1890
will be able 10 pay for a home on
the Veterans Administration guar
antccd or insured home loan Mr..
lrr pointed out. This means that
an cX-mCmbcr of the armed forces
can buy Il home without down pay
mcnt at 1 per cent interest with as
much as % years 10 pay for it. if
need be. He can get Il home loan
on these terms from the savings and
loan institutions which already have
spent two years getting ready for
Il volume Of this type of business and
have made close 10 Sl,000.000,0O of
veterans home loans"
He indicated that the existence of
this kind of home loan terms for
veterans would have more to do
with making the ownership of their
homes possible for three out of four
of all the American families than
any previous program made possible
by federal legislation.
Other contracts between ways OF
paying for home now and i'm the
last prosperity period were t/s
length of the loan tcrm-cieht 10
twelve years was prevalent then and
IiftnptN ~
lower costs. including not only sub
Stantial reductions in interest rates
on mortgages the country over but
the elimination or reduction of manY
Incidental costs in procuring credit:
the almost universal application Of
the monthly repayment plan on
home loans: the smaller down pay
mcnts required of home owners.
which down payments have been
for entirely, in the case
of veterans. by the Veterans Admin
guarantee.
Added 10 these changes is the
fact that home-seeker these DAYS
does not have 10 conform to ius, one
type of loan plan as offered by
credit institution. but will
find several alternatives so
that a cuStom-madc loan plan en-
rrges as the solution for his parti-
,ular credit needs" the League pre-
sidCnt indicated.
Our savings and loan associations
and cooperative banks with IlS
years of tradition behind them arc
10 be congratulated that they have
made the transition into this new
ERA when home-owner credit like
many other things is undergoing re-
yolution."