Show BABSON'S t AUTHENTIC ST STATEMENT A TE Rorer w a bi Special l to THE EXPRESS A HOME Babson Park Park Mass June 17 Young couples today often feel that they are pouring money down the drain II if they rent an apartment or a house Why support a landlord they say when our monthly payments could be building up an equity in ina ina a home of our own There is of course logic in this attitude hence millions of young people are now living in residences that they have bought or built themselves LOOK BEFORE YOU LEAP IN HOME BUYING Many young husbands and wives today find it is not much more complicated to obtain a mortgage and arrange monthly payments than it isto is to move in to a rented establishment and send regular checks to a land lord However they are often greenhorns in the matter of bud for a family and do not give enough time to figuring out their income and deciding how it itcan itcan can be made to meet all their living requirements That is why many counselors for young cou cou- cou pIes advise rental of a small reasonable apartment for the beginning of their lives together In this way the bride and groom can determine just how much they make after all tax tax- taxes es and how much they will have left over after the essen for living If IC the girl works as is so often the case today today- an apartment is easier to main main- maintain tain demanding a minimum of upkeep and housekeeping during I the early days of adjustment This period also should provide time for building up a savings account life insurance coverage and house furnishings to be us us- us used ed when the couple move into their own place Equally tant it will give the young pen peo pIe time to figure out what they most want when they go out to buy a home of their own SHOP FOR HOME FINAN FINAN- FINANCING CING When the time comes to go hunting house the young folk should also go shopping for the best place to obtain a mortgage Possible lenders will include commercial banks savings and loan associations life insurance companies and mortgage bank bank- bankers ers In some areas institutions known as operative co-operative banks and homestead associations fall into the same category for mort mortgaging as do savings and loan associations Interest rates currently range from 5 per cent to better than 6 per cent If an older house is under consideration the down payment may constitute as a s much as 20 per cent to 33 3 1 per percent cent ent of the total cost Under certain tain conditions a new house can be taken over with a down pay pay- payment ment of 5 per cent or even less Loans back by the VA or the carry 5 interest and us- us usually usually Include term longer mort mort- mort mortgages gages If desired and consider consider- considerably ably lighter down payments It Itis Itis is wise for couples in the market for a home to discuss such mat mat- matters with several mortgage out out- outlets lets before deciding on what steps to take Advice from older more experienced family memo mem- members bers or friends should also bl be besought sought TERM LONG FINANCING OFTEN PREFERABLE The longer the mortgage the themore themore more money Is paid out in inter inter- interest est cst Sometimes this t s young people to attempt the term shortest financing possible This however can be a heavy burden to a limited budget and may soon become a bone of ser ser- ious sous contention when the pay meats ments along with the pres pres- pres pressures of other purchases in in- in intrude trude on regular living require require- requirements ments Most financing specifies monthly payments for 20 25 or 30 years Under particular con con- conditions shorter or longer per per- periods are possible Generally for young families of restricted means a term long mortgage is safest for the bud bud- budget get despite the larger amount paid In interest Another factor to keep in mind If money is likely to be needed for repairs or child chUd education an open end can ordinarily be ex- ex extended ex tended or renewed after enough equity has been built up over the years As a general rule rt te avoid second mortgages they usually entail heavy interest and service expenses in addition to the primary mary mortgage |