Open End Mortgoges For Home Building

New York-"Today it is possible to open-end a mortgage in every state but Texas," says Lif.e magazine in an article on an increasingly popular method of financing homes. "Open-end mortgage financing has worked for a long time," Life says, "but fer,v people have been arvare of it, In England it has been a practice for years."

The Life article defines an open-end mortgage as "one, basically, that can be reopened, renerved for the amount that has been paid off and, in some cases, increased."

To illustrate the effect of the open-end mortgage, Life offers the example of the couple whose size house and mortgage suited them fine at the time of the original purchase. "Within five years the $10,000 mortgage, paid oft'at $79 a month, was dovi'n to $7,455." However, while the husband's salary had increased so had his family. "Bv now the house was far too small. He rvanted to build an addition. but the standard FHA Title I loan would have to be repaid within three years and the total monthly house payments would jump to $160, rvhich he could not afford. He went unhappily to the bank. The banker suggested the solution: borrow the same amount that had been paid off on the mortgage, add it onto the very same mortgage through an 'openend.' The monthly payments would not increase. Instead the life of the mortgage would be extended five years."

The Life article points out that this method of repaying the loan is but one of several available in the U. S. today under standard open-end rirortgage provisions. Some call for increased payments; some vary the length of time of payment; others involve variations on time and amount of payment.

The type of improvements allowable under open-end mortgages also varies around the country. According to Life, "Some states-Louisiana and Connecticut, for example-limit open-end loans to home improvements. Some limit the amount of money that can be added on the original mortgage. Other states are less strict. In Illinois you can use your home as collateral, if you u'ish, to raise chinchillas, and in Kansas to buy an electric organ."

Heoth.Rinehqrt Wedding

The wedding of Mr. Logan James Heath to Miss \\randa Rinehart was solemnized the evening of August 8, in the garden chapel of Capillo de San Antonio in Anaheim. The u,'edding took place at 8 in the evening, and the Rev. Frar-rk E. Butterworth performed the ceremony. Both young people have made their homes in Anaheim, and returning from their wedding trip to Mexico, they r,r'ill live in Coron;r del Mar.

Miss Rinehart is the daughter of Mr. and Mrs. Charles H. Rinehart, of Anaheim, while the groom is the son of N{r. and Mrs. Logan Heath, of Phoenix, Arizona. He is a salesman for the Lumber Mill & Supply Company, of Los Angeles, and well knorvn to the lumber trade of this area.

Speciatizing In Pacific Coast

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