Manchester Herald
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\ ' < M - MANCHESTER HERALD. Monday. May 6, 1985 MANCHISTFR FOCUS SPORTS WEATHER BUSINESS Neighbors fight Shhhhh — the frogs Kentucky Derby win 11 Fair, cool tonight; Peterman condos might be listening in thrill for Qambolati 11 sunny Wednesday Fifteen-year mortgage brings home financing innovation ... page 3 ...'page 11 ... page 15 I I pag® 2 interest payments in the first five years of a 30-year, free and clear before retirement. loan don’t differ drastically from those of a 15-year A new type of mortgage has been introduced into the In confirmation, these loans appeal primarily to . n loan, the U.S. League's Wilson explains. marketplace that can save you thousands of dollars second- and third-time buyers. Again, using the same example, you would pay_ over the life of your loan. It could be of immense To illustrate the savings gained by selecting a, importance to you — as it already has been to other Y o u r $59,373 in interest during the first five years of a 15-year loan: 30-year loan. On the 15-year loan, you would pay individuals buying or planning to buy-homes. N o n e y ^ ' s Consider a $100,000 mortgage at 12 iHu ceni inieresl. $55,662 The difference: $3,711. If you’re in the 50 What's the gimmick? There is none. Merely shop for On a 30-year loan, monthly inieresl and principal percent tax bracket, the savings wouid amount to a 15-year mortgage instead of the traditional 30-year W o rth payments would be $1,029. On a 15-year loan, your loan. The "gimmick " then is; For a surprisingly low monthly payments would rise $171 to $1,200. about $1,855. Sylvia Porter Another attractive twist to 15-year mortgages: increase in your monthly payments, you build equity But over the life of a 30-year loan, you would pay Many leiiders price these 15-year loans at lower more quickly and own the properly outright in half the $270,301 in interest charge alone. On the 15-year loan, Tuesday, May 7,1985 — Single copy; 254 interest rates because their funds are lied uP - Manchester, Conn. — A City of Village Charm time. your interest would total $116,030. The difference: a shorter periods. With a little hunting, you can find “ Just because a 15-year mortgage is half as long dramatic $154,271. rates up to one-half point below rates for fixed-rale doesn't mean you have to pay two times as much, Now note how quickly your equity would build in a says Michael J. WHson. assistant director of research 15-year mortgage. Continuing this illustration, at the 30-year mortgages, , involve less risk because money is tied up lor a shorter Even if you already have a 30-year loan apd don I for the U.S^League of Savings Institutions, the end of five years on a 30-year loan, you still would owe period: and since .virtually all 15-year loans to date want to go through the hassle ol refinancing, you still . association'Tor the savings and loan industry. "That's about $97,700 in principal But with a 15-year loan, you have been at fixed rates, the institutions can calculate can save in interest charges by fattening your the big misconception." ' would owe about $83,700 in principal — a difference of In little over a year, almost two-thirds of S&Ls in the precisely what their returns will be. monthly loan payment. ' Lenders don't grab all the benefits, though. The $14,000. Budget calls United States have started offering 15-year mort Be sure you don’t trigger a prepayment penalty by 15-year loans attract homeowners who want to pay off For owners planning to sell their homes relatively gages to their customers, and these loans have early in the life of a loan, the quick growth in equity is including the extra sum. Your extra money will be loans quickly and have their cash available for other applied to the principal. This will help reduce the , jumped from zero to 17 percent of the fixed-rate loans an outstandingly attractive feature. bought in the secondary market by the Federal needs. One woman in her early 50s spoke for many interest charges to you, because you’ll be cutting the when she told me the reason she and her husband took One benefit of paying off a mortgage shows up on National Mortgage Association. total on which you pay inieresl. a 15-year mortgage was so they could own the house your income tuxes. Curiously, the lax bt'iiefils (or Institutions welcome the 15-year loans. They s / ' for tax rise Ready for merger Scovill facility for sale of 1 .rIS mills By Alex GIrelll been passed. WATERBURY (UPI) - The million. group in Nashville, Tenn,, and the Herald Reporter Both parties agreed on approv ■(* ‘ Schrader Bellows Automation 7 world headquarters of Scovill Inc. The diversified manufacturing ing the full request of the Board of is up for sale, markihg the company has since fallen on hard group in Akron. Ohio. Voting almost entirely along Education for $25,258,540, with beginning of sweeping changes at times and now other divisions of The fasteners group is the party lines, the Board of Directors $24,757,303 of it for acbooU, $375,770 the 183-year-old company. Scovill are expected to be sold. •second most profitable of Scovill's Monday night approved a budget for the Regional Occupational In January. 93 percept of the On April 22, the company offered six groups^ reporting operating for the next fiscal year that will Training Center, and $125,365 for firm 's stock was sold for $520 to sell four bodies of water in earnings or$22.5 million in 1984 on call for a tax rate of 44.4S mills to health and welfare services to million to the wealthy Canadian Wolcott to the town for$3.2 million. sales of $128.4 million. support the general fund. private schools. Belzberg family of Vancouver. Neither First City officials nor ' The tw o^h rad er groups are the The budget will mean a rise of But the Democrats eliminated Now Scovill is poised to merge with Paul F. Beetz. Jr., Scovill's l.U mills in taxes for the general from the budget a provision for a company's weakest. J. Kenneth - . First Cities Properties Inc. of director of corporate communica Nameth. vice president of fund, or $1.U per thouiand dollars full-time housing inspector to Beverly Hills, Calif., a real estate tions, would comment on the sale Schrader Automotive, and William In assessed property value. The conduct systematic inspections of of other Scovill divisions. 'iL development firm also owned by E. Cavanaugh, vice president of current mill rate ia ti.30. rented bousing. The Republicans the Belzbergs. ^ut employees at the corporate Schrader Bellows, are the only two The budget calls for general fund favored' the houking code The headquaters building cost headquaters believe First City will Scovill senior managers not pro expenditures of $45,531,018, com inspector. retain the company's NuTone about $5 million build in 1979, in the tected by "golden parachute " pared with $45,658,122 recom Republican Director Thomas H. days when Scovill wasreturning to Housing group. Yale Security contracts negotiated earlier this mended by General Manager Ferguson moved to budget $224,520 prosperity under the chairman group, .and the Hamilton Beach year w'ith 13 top executives. Robert B. Weiss and $45,502,516 for the health Division to provide ship of Malcolm Baldrige, who is Housewares group, all of which are that would have been approved If a for the inspection program, saying now U.S. Commerce Secretary. leaders in their fields. "It's strictly, rumor right now, " separate Republican budget had tenants have no recourse and that The current value of the head Possible sales include the Scovill Cavanaugh said. "But people are through their rents, they pay town quarters is now set by commercial Apparel Fasteners group in Water- looking at us. I think we will be taxes. real estate agents ^ over $10 town, the Schrader Automotive sold." Democratic Director Kenneth Center OK Tedford, who moved for a health budget of $100,322, said there was no demonstrated need for a bous Seabrook unfazed by Vt. ruling ing code inspector and that the 8o.^_Tjrqgl_nlo is sought administration bad given the di-' Seabrook II has since been condi impact of the Vermont ruling, but rectors insuffient information to M SEABROOK, N.H. (UPI) - Playing to learn Construction of the Seabrook nu tionally canceled. said all the utility-owners are Local developer Richard Hayes make a Judgment. He aaid the said today that he is negotiating clear plant's first reactor will A spokesman for N e V Hamp contractually bound to completing Building Division had indicated it continue at its present pace, shire Yankee, Seabrook's manage the plant unless they can sell their with a food store and several retail could conduct houaing code inspec Debbie Often, a sixth-grader at Nathan Hale School, second annual "math playday," in which the Nathan Hale despite an adverse regulatory ment, said the order would have interests in the project. outlets as prospective tenants of a tions on a complaint basia as well looks for hidden words last week in a word-search game students tested games and puzzle books prepared by the Utilities that have attempted to 150,000-aquare-foot shopping cen ruling from a third New England "no immediate impact " on the as conduct building code inspec created by seventh-graders at Bennet Junior High Bennet seventh-graders.