The Sheffer Team

                       

Some people are just lousy at saving money in a traditional savings account, and a house can be considered an automatic savings account. You accumulate savings in two ways: 

First, every month, a portion of your payment goes toward paying off the principal of the loan. Admittedly, in the early years of the mortgage, this is not much. But over time, this amount builds and accelerates.

           

Second, your home appreciates in value. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate. Over time, history has shown that owning a home is one of the very best and most solid financial investments.