BUYING FARMS WITH LAXD-BAXK LOAXS. 



17 



Table VIII. — Manner of repaying amount loaned on second mortgage. 



[First mortgage held by Federal land banks and giving of mortgages coincident to the 



purchase of the laud.] 







Per cent of second mortgages repayable— 



Holder of second mortgage. All cases. 



j 



^^-thly.' Semian- 



Annu- 

 ally. 



Eudof 



mortgage 



period. 



Any time Other 

 optional. , ways. 





35 

 398 

 144 





2.9 

 0.3 



O.S 



0.5 

 3 



17.1 

 46.7 

 20.1 



38.3 

 221 



40.0 

 44.5 

 70.1 



50.6 

 292 



34.3 .i-7 



Other former owners 



1.0 



1.5 

 7.6 



5.0 



6.0 



Other than former owners 



1.4 



All eases: 



0.7 

 i 



4.9 



Number 



577 



29 2S 









In Table IX second mortgages involving the privilege of periodic 

 repayment are grouped according to the size of annual payments. 

 There were 240 second mortgages repayable in periodic payments on 

 which it was possible to determine the relation of the size of the 

 periodic payments to the cost of the farm. Ignoring interest, it is 

 found that about one-third of these 240 borrowers are under obliga- 

 tion to pay to the holder of the second mortgage, each year till the 

 second mortgage is fully paid, an amount up to 6 per cent of the 

 original cost of the farm by way of reducing the amount of the second 

 mortgage. Paj^ments larger than this, on second mortgages of any 

 considerable size, would be rather hard to meet out of the income of 

 the farm in addition to the payment of interest on the second mort- 

 gage, and interest and amortization on the Federal land-bank loan. 

 Yet the greater number of the rest of these second mortgages are so 

 arranged that there is annually due on the repayment of the second 

 mortgage an amount exceeding 6 per cent of the cost of the farm in 

 addition to the interest due on the second mortffaofe. 



Table IX. — Periodw repai/ment of second mortgugen ; size of annual pai/ments. 

 [Per cent of total cost of farm, ignorinj; interest.] 



Annual payment. 



Number 

 of records. 



Per cent 



of all 

 records. 



Annual payment. 



Number ^f.^ff* 

 ofrecords. ^^^J^?^. 



Up to 4 per cent 



33 

 45 

 37 

 36 

 37 



13. S 

 IS.S 

 15.4 

 15. 

 15.4 



Over 15 per cent 



15 

 37 



6.2 



4to6 



Special cases 



15.4 



6 to 8 



Total 





8tol0 



240 



100.0 



lOtolS 











In at least one instance the Federal farm-loan plan of repaying 

 the interest and amortizing the principal has been copied by the seller 

 of his farm in drawing up the terms of repayment on the second 

 mortgage, which he accepted in part payment for his farm. In buy- 



