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Forced Savings
Some people are just
lousy at saving money, and a house is an automatic savings account. You
accumulate savings in two ways. Every month, a portion of your payment
goes toward the principal. Admittedly, in the early years of the
mortgage, this is not much. Over time, however, it accelerates.
Second, your home
appreciates. 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 financial investments.
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