FARM LAND VALUES IN IOWA. 17 
*e 
Following is a summary of rates of interest on first mortgages: 
NGIAT pen Cente. 22224. ee 1 At 53 per COM ss oissssee GW 
ENG OD PeTACente we aoe sate 307 Jib OF? VO ROOM oS omp aoe IL 
NH Grd OC COM ie saoeebede oom 4 AO PetCemt. aia. 5 0 
_ It seems clear that practically all mortgages are either for 5 per 
<y cent, 54 per cent, or 6 per cent, those made at 54 per cent predomi- 
nating, closely followed by those made at 5 per cent. 
The duration of second mortgages is shown in table XI. 
TaBLE XI.—Second mortgages classified by duration of loan. 
Number 
Number 
- Number Number 
es of cases. oryeats of cases. 
| 2 4 8 5 
3 14 9 2 
| 4 7 10 28 
44 1 12 3 
PE 5 17 15 6 
i 3 6 2 20 1 
7 6 33 1 
As in the case of first mortgages, 5 years and 10 years are the out- 
standing periods. The average duration for second mortgages is 
6.6 years as compared with 7.7 years for first mortgages. 
Rates of interest on second mortgages are as follows: 
EGO Wen CCN bo -525 55 en sc 31 ING pen. cents in ae ae 
Att: O= Per CeNt-< 4s 2.2 56 AteSoper Cena = saat! 3 
| aX, (0) J OVC OLE) 0 esictete Sey ye Sars 79 
There seems to be a stronger tendency toward a 6 per cent rate 
than in the case of first mortgages. However, the rate of interest 
for second mortgages is not to a marked extent greater than for 
_@ first mortgages, the average being 5.7 per cent for second and 5.3 
| per cent for first mortgages. 
A few third mortgages were found, numbering, in all, 11. Four 
of these were for 4 years, 5 for 5 years, 1 for 6 years, and 1 for 8 
years. Seven were given at 6 per cent, 3 at 54 per cent, and 1 at 
5 per cent. 
A study of the terms of the loans indicates that on the whole 
they are not more liberal in percentage of cash payment required 
on purchase price than was the practice before the ‘boom.’ One 
of the authors of this bulletin has made a comparative study of 
terms of loans covering both periods and has found that the per- 
i centage of average sale value required in cash during 1919 corres- 
ponds very closely to the percentage required in the period before 
the ‘‘boom.”’ There appears to be a strong tendency toward con- 
ventional rates of interest and periods of loans. 
1 “Studies of Land Values in Iowa,” by O. G. Lloyd, the Jowa Agriculturist, December, 1919, page 361, 
184592°—20—Bull. 874-3 
