The Wilmington morning star., 1946-02-08
Bubson Advises PLANNING
For Home Buildings Mow

see little inducement for privat,
individuals to loan money or
mortgages at this time unless the,
do it to help the sale of property
which they desire to unload. AS :
cold business proposition, 1 should
hate to tie up for twenty years a,
three and one-haf or four pc,
cent interest. This is why I am
bearish on most high grade, long.
term bond issues.
"Packaged" Mortgages
Borrowers have another advant-
age today in many communities. !
have Just noticed an advertise
ment by the First Federal Saw,
ings and Loan Association Of New
Haven, Connecticut, offering to
loan money for building and
equipping a home with all me-
chanical conveniences for comfort
able living" This includes insula
ton, cooking range. refrigerator,
washing machine, garbage dlspos-
al, ventilating fan as well as COM
plete heating and lighting equip
ment and the latest plumbing fix
lures. I understand that some
banks are even including air con-
ditioning.
Up to the present time, when
these electrical appliances were
available, it has been possible to
buy them on installments, running
over about Is months. This, how
ever, has been a heavy burden on
young people. Now, under pack
aged" mortgages, all these brand
new appliances can be included
with the original cost of the house,
and paid for over a period Of 20
years. Furthermore, this pro
gram is much more convenient to
the borrower because he is deal
ing with and making payments to
only one concern, namely the bank,
instead of to several local deal
ers. I estimate the cost Of such
equipment would add only about
sixty cents month for every one
hundred dollars worth bought on
the above basis.
For Requirements
To keep the house up-to-date,
these "packaged" mortgages al
low for replacement of appliances
and provide payments therefor by
the addition of a few cents to the
aforementioned monthly figure.
It should also Be remembered that
under such a program the cost OF
the appliances is considerably re,
duced as the agents commissions
are either eliminated or cut down
to a nominal figure. Whether or
not your bank will pay for your
electrical appliances, it will take
your mortgage on monthly pay
ment basis which will include pay
ment Of taxes, insurance prem
Iuns, legal title fees, and other
expenses. All Ct this amounts up
to no more than you are now pay
ing for rent. Moreover, under this
new system you will some day
own your home outright without
any more payments.
Bullish Sentiments
When I saw the government
,ancelling its big war contracts
with the General Electric, the
Westinghouse, and other similar
companies after Japan collapsed,
became fearful. Although these
companies would save consider
able through the elimination of
the excess-profits taxes, yet l
doubted if new peace business
would Offset the loss Of war bust
ness. The more, however, I study
these "packaged" mortgages the
more hopeful become for the elec-
trical appliance stocks. Certainly,
if this new form Of loaning money
to home builders becomes general,
it should be boon to the cleo
trical equipment industry. Home
owners will buy much more
equipment and much better equip
ment. Furthermore, this trend
will make housawork lighter, con-
serve and protect foods, and per-
haps even reduce the cost Of liv-
ing. One other thought: This ex-