Automatic Savings

Some people have a hard time saving money, but a house is an automatic savings account.

You accumulate savings in two ways. First, every month, a portion of your payment goes toward the principal. In the early years of the mortgage, it’s not that much. But over time, it accelerates.

Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year. Over time, history has shown that owning a home is one of the very best financial investments.