Do not be misled by low down payments. Although a few hundred dollars moves you in, just how deep are you in?

Some people get in a lot deeper than they expect to. Read all the fine print in the contract before signing.

How large are the monthly payments? How many years do you have to keep up the payments? Are the payments arranged to include the taxes and the fire insurance, as well as the principal and interest?

What is the interest rate? Can the entire amount be paid up at any time?

When you sign up to pay monthly for 25 years, remember that 25 years is a long time to make payments.

Sometimes people have to continue renting because they can't get enough money together to make the down payment.

Where do people get building money, anyway?

Most of them borrow it. Ordinarily you can't borrow very much, unless you have some money of your own to start with.

There are two ways to get money together.

One way is to earn more, the other is to spend less. At first glance earning more might seem to be the better, but since most people spend up to the limit of their earnings, actually the only way to save money is to spend less.

This is often difficult, but seldom impossible, if people really make up their minds to hang on to their money to get enough together for a worth-while project like getting a house.

If you postpone spending money as long as possible, often the need for spending it passes, and the money can be left in the savings account.

Incidentally, money kept in the purse or around the house will always get spent somehow. The only way to get money together to start building a house is to save it in a bank. It is very difficult to get a loan unless you have the lot paid for.

Even if sometimes you might borrow from a rich relative, often the thing that made him rich prohibits him from lending it to you, that is, his good business sense.

If for some reason or in some way you come into possession of a few thousand dollars, don't fritter it away, or buy a new car; go out and buy a good building lot with it. If you later decide not to build, you can sell the lot, usually at a handsome profit.

During the last hundred years, money invested in good land has increased in value faster than almost anything else, when it comes to the long steady pull.

Land has always proved to be a good investment, and as the population increases, it becomes scarcer owing to the increased demand and should go up in price. Be sure to select your location with care, usually in the direction of growth. Poorly located land may decrease in value.

If you are lucky and have a few thousand dollars or a lot paid for, you can usually borrow what money you need to solve your housing problem.

Often since it is not possible to borrow enough money on a first mortgage, or trust deed, to do all you want to do, a second mortgage is necessary.

This second mortgage usually runs from three to five years, whereas the first mortgage runs from ten to twenty-five years or more.

Always use a mortgage calculator to help you get the best mortgage possible, this will save you a great deal of money in the long term.