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  • Post War Modern Tract Houses The Gregory Ain Mar Vista Tract is a group of 52 homes that was built in 1948 by famous modern architect Gregory Ain and landscape architect Garrett Eckbo. This project is probably his most well known. What make Ain’s tract home different from other tract homes being developed at the […]

  • West Hollywood Zip Codes: 90038, 90046, 90048, 90069 Location West Hollywood is bordered by Hollywood Hills on the north, Miracle Mile on the south, Hollywood on the east, and Beverly Hills on the west. Landmarks   NEIGHBORHOODS: -West Hollywood West -Norma Traingle -CentralĀ W.H. -Sunset Strip -Eastside CITY OF ADULTS West Hollywood, sometimes referred to as […]

  • Lloyd Wright Studio 858 N Doheny Los Angeles CA 90069 858 Doheny was built in 1927 by Frank Lloyd Wright’s son Lloyd Wright (who is often confused with his father) as his studio and office. Much like Rudolph Schindler home/studio built on Kings drive five years earlier, Lloyd Wright would live and work in this […]

  • Turning a unit quickly when a vacancy comes up is important to keep the rent coming in. If you have a property management company their leasing agent or onsite property manager will handle taking pictures and leasing the unit for you. For landlords, I have some advice for advertising and getting your unit rented quick- […]

  • A design ahead of its time. The Schindler house, also known as the Kings Road House or Schindler Chase house, is located at 835 N Kings Road in West Hollywood. It was built by famous modern architect Rudolf Schindler in 1922 for his primary residence. Schindler house was one of the first modern houses ever […]

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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.

 

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