TERMS ON CONVENTIONAL MORTGAGE LOANS ON EXISTING HOUSES.

The article focuses on the relationship between interest rate structures and mortgage loans. Generally supported principles asserting the uniformity of stated and effective interest rates to comparable mortgage loans and that interest rates vary concerning other mortgage contract differences are outlined. Case data is presented from commercial banks in Chicago, Illinois from 1960 for the purpose of evaluating these principals. It is concluded that most interest rates do directly relate to loan to value ratios, but are not otherwise uniform over short term periods.