These building-loan associations will lend as high as 80 per cent on the value of house and grounds, provided the character of the individual in the community warrants it. Their average-size loans have been computed to be about $4,000. If the minimum payment is adhered to, the loan is usually paid up in twelve years, although arrangements can be made by which this can be shortened. The interest charged is from 6 per cent to 8 per cent. If the money is not secured through the above source, then it is customary to pay a commission to the agent who secures a loan from some financing institution or private investor. This commission differs, according to the locality, ranging from 1 to 4 per cent on first mortgages, and from 5 per cent upward on second mortgages. If a contract is desired on a second mortgage, the agent will be obliged to secure it from some private individual, for first-mortgage companies will not purchase them. This often leads to discounts of from 15 to 30 per cent on second mortgages and contracts. It is well for every prospective owner, before he considers financing the construction of a small house, to sit down and figure out all of the incidental expenditures which are connected with it, for often some of the minor items are not taken into account, and they may spoil the whole scheme. Taking a typical example, the items of expense are as follows: 1. Cost of the lot. 2. Fee for title search. 3. Tax search and recording fee. 4. Possibly cost of surveying lot, but not always. 5. Broker’s fee for securing mortgage. 6. Interest on each advance of the loan during erection. 7. Cost of the building less the amount borrowed. 8. Architect’s fee. 9. Owner’s liability insurance. 10. Fee for filing plans in Building Department. _Cost to be Met during Year of Ownership_ 1. Interest on building loan. 2. Payment on reduction of loan. 3. Interest lost on owner’s money which he invested in the lot and building. 4. Fire insurance. 5. Up-keep, usually about 1½ per cent. 6. Taxes on property and water-supply. 7. Possible assessments. 8. Maintenance cost, such as coal, gas, and electricity.