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  • Roscomare Elementary Address: 2425 Roscomare Rd Los Angeles CA 90077 Grades: K-5 Enrollment: 478 API: 967 (2013) Student Teacher Ratio: 23:1 School Demographics  Roscomare Elementary has a strong sense of community and caring Teachers The curriculum at Roscomare is set to meet the California Common Core standards, however the method of instruction is a little […]

  •           John Thomas Dye  Address: 11414 Chalon Rd Los Angeles, CA 90049 Grades: K-6 Enrollment: 335 Student Teacher Ratio: 14 to 1 (one lead teacher and one teacher’s associate in each class so its really like 7 to 1) Demographics John Thomas Dye is not just Elementary school – it’s a Second […]

  •   Quick Facts Warner Avenue Elementary Address: 615 Holmby Ave Los Angeles CA 90024 Grades: K-5 Enrollment: 647 Students API: 960 (2013) Student teacher ratio 20:1 School Demographics Public School that feels Like a Private school! Warner is a traditional school that focuses on academics. Parent’s who favor progressive education usually don’t like it. The academics […]

  • West Knoll Condominiums Address: 8535 West Knoll Drive West Hollywood CA 90069 Summary 8535 West Knoll is a 66 unit West Hollywood mid rise condo  built in 1974 in the Norma Triangle Neighborhood of West Hollywood. West Knoll has recently undergone some renovations in the hallways and lobby so it has a very up to date […]

  • A lot of people are wondering what is going to happen next with the real estate market! We know that the market has rebounded substantially from 2009 and 2010. We are close to the previous price peak in 2007. The question is- where are we heading next? I think we have 10%-20% more upside at the […]

Blog >> Midyear 2014 real estate market

Amortization

Eugene-Delacroix-Hamlet

The latin root of Amortize is ‘mort’, which means death

Amortization is the process of repaying a mortgage loan’s principal and interest through monthly payments. Each payment reduces or amortizes the loan balance. Interest is “front loaded” meaning that although your payment remains the same each month, a higher percentage of the payment goes to interest at the beginning of your loan.

Since your payment is fixed, inflation works in your favor. You are borrow today’s dollars and paying them back with the futures inflated dollars. This lessons the blow of interest.

A lot of home owners may be surprised at just how much interest they end up paying over the life of their loan. I like Bank Rate’s Mortgage Calculator. Load an amortization table and you might be surprised!

A 15 year fixed mortgage will pay less interest than a 30 year fixed. But which is better? The advantages with a 15 year fixed mortgage is that you will get a slightly lower interest rate than the 30 year fixed. The disadvantage is that your monthly payments will be higher. I usually recommend to get a 30 year fixed mortgage, because you can always choose to make an additional payment or two each year that will accelerate it to a 15 year schedule, however if you run into trouble one year, you won’t have to worry about getting behind. I understand that some owners won’t make the additional payment unless they have to, and in that case a 15 year fixed might be better.