Table II recognizes the fact that families having the same annual income may not be able to devote the same amount toward the purchase of a home. A family, for example, with several small children and perhaps other dependents, living in a city may not be able to put much aside toward buying a home. Another family with the same income but with no children or dependents, situated in a village where living costs are low, can afford to pay out a very much larger proportion of its income toward buying its home. The overlapping incomes in the table are thus necessary to cover even ordinary differences in the amounts that families with the same income will be able to spend toward a home after they have paid for food, clothing, and other necessities.

The annual expenses involved in purchasing and maintaining a home of a given price may also vary.

The table, therefore, does not attempt to set up arbitrary standards, although it is fairly typical and should be useful as a basis from which to start figuring.

Table II. Table Showing Income, Value Of Home, And Typical Annual Expenses For House And Lot. Section 1. - Cash Payment Of 20 Per Cent Of Total Value

1. Value of house and lot. .

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2. Annual income....................

1,200 to 1,800

1,600 to 2,400

2,000 to 3,000

2,400 to 3,600

2,800 to 4,200

3,200 to 4,800

3,600 to 5,400

4,000 to

6,000

3. First cash payment (20 per cent of value)......

600

800

1,000

1,200

1,400

1,600

1,800

2,000

4. Amount of loan........

2,400

3,200

4,000

4,800

5,600

6,400

7,200

8,000

5. Interest and amortization (12 per cent of loan)...

300

400

500

600

700

800

900

1,000

6. Estimated taxes, insurance, and upkeep.......

120

160

200

240

280

320

360

400

7. Total annual expense.. .

420

560

700

840

980

I, 120

1,260

1,400

8. Savings included in above total (first year)........

150

200

250

300

350

400

450

500

9. Expenses comparable with rent (first year)___

270

360

450

540

630

720

810

900

* Assuming an initial cash payment of 20 per cent of the total value, the annual cash outlay (item 7) in this section is about as low as can ordinarily be arranged for the first few years. The financing charge might be cut down later on, when part of the principal of the loan has been paid off, but the whole debt will be canceled in about twelve years if the payments given in the table are continued regularly. (See General Notes, pages 20.22.)

Section II. - Cash Payment Of 30 Per Cent of Total Value

1. Value of house and lot. .

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2 . Annual income.........

1,200 to 1,800

1,600 to 2,400

2,000 to 3,000

2,400 to 3,600

2,800 to 4,200

3,200 to 4,800

3,600 to 5,400

4,000 to

6,000

3. First cash payment (30 per cent of value)......

900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

4. Amount of loan........

2,100

2,800

3,500

4,200

4,900

5,600

6,300

7,000

5. Interest and amortization (12 per cent of loan)....

252

336

420

504

588

672

756

840

6. Estimated taxes, insurance, and upkeep.......

120

160

200

240

280

320

360

400

7. Total annual expenses. .

372

496

620

744

868

992

1,116

1,240

8. Savings included in above total (first year)........

126

168

210

252

294

336

378

420

9. Expenses comparable with rent (first year)....

246

328

410

492

574

656

738

820

† Assuming an initial cash payment of 30 per cent of the total value, the annual cash outlay (item 7) in this section is about as low as can ordinarily be arranged for the first few years. The financing charges might be cut down later on, when part of the principal of the loan has been paid off, but the whole debt will be canceled in about twelve years if the payments given in the table are continued regularly. (See General Notes, pages 20-22.)

Section III.- Cash Payment Of 40 Per Cent Of Total Value

1. Value of house and lot. .

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2. Annual income..............

1,200 to 1,800

1,600 to

2,400

2,000 to 3,000

2,400 to 3,600

2,800 to 4,200

3,200 to 4,800

3,600 to 5,400

4,000 to 6,000

3. First cash payment (40 per cent of value)......

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4. Amount of loan........

1,800

2,400

3,000

3,600

4,200

4,800

5,400

6,000

5. Interest and amortization (12 per cent of loan)....

216

288

360

432

504

576

648

720

6. Estimated taxes, insurance, and upkeep.......

120

160

200

240

280

320

360

400

7. Total annual expenses..

336

448

560

672

784

896

1,008

1,120

8. Savings included in above total (first year)........

108

144

180

216

252

288

324

360

9. Expenses comparable with rent (first year)___

228

304

380

456

532

608

684

760

% The total outlay (item 7) in this section is based on the assumption that a family able to pay 40 per cent of the value of a home in cash will normally find it best to pay off the loan in installments, at least as rapidly as in the preceding cases. (See General Notes, below.)