Amortization is paying off a debt over time in equal installments. Part of each payment goes toward the principal, and part goes to the interest.

DISCUSSION

Do a quick check on any housing/estate sites like Zillow, Homes.com, etc., to find the average (selling) price of any home for the following towns: Arcadia, Pasadena, Santa Barbara, San Diego, Oxnard, Palmdale, Lancaster, or San Jose.

Select a bank of your choice and find the interest rate for a 15-year and 30-year mortgage.

Calculate the amortization of the home selected for 15-year and 30-year mortgages.

What were some of the key differences between the two?

What are the advantages of each? Which would you prefer, and what factors can help in this decision-making process?

Some of these sites may help:

https://www.zillow.com/

https://www.trulia.com/

https://www.homes.com/

Note

• Responses could include suggestions for further resources, questions of clarification, or providing context and insight. Avoid simple posts of agreement; if you agree, explain why, and then thoughtfully further the conversation.