FINANCING THE INVESTMENT 



upon resources through obviating the necessity 

 of meeting interest payments on mortgages 

 and makes possible the use of any surplus funds 

 for improvement, for education and for giving 

 the family the advantages which country life 

 offers. If it is necessary to borrow funds for 

 financing the purchase, special attention should 

 be given to the type of mortgage which is 

 obtained. 



Mortgage Financing. One of the most desir- 

 able types of financing is through a financially 

 sound building and loan association whereby 

 the interest and the amortization of the mortgage 

 are taken care of through monthly payments. 

 Such building and loan mortgages are available 

 in most localities throughout the country. A 

 series of monthly payments can be made which 

 will take care of the interest payments and the 

 mortgage itself so that within a period of from 

 ten to twelve years, in most cases, the mortgage 

 is amortized and the owner has the advantages 

 of a home that is free of encumbrance. For exam- 

 ple, if the mortgage amounts to $3,000, subscrip- 

 tion to fifteen shares of a building and loan 

 association at $i a share per month would make 

 it possible to clear off the mortgage in about 

 eleven years. This would call for the payment 

 to the association of $15 per month and interest. 

 Through the compounding of interest, the mort- 



27 



