If you invested in and only make 1/2 more than you are paying, you will have accumalated ehough in your side account to pay your home off years early. Or continue to contribute for thiry years and you will have hundreds of thousands more the the pay off of your home. Of course everyones scenerio will be different. Consult your financial pro.

Equity in a home does not make you money by just sitting there. In fact, if the value of your property decreases, your equity is lost. By cashing out the equity and placing those funds in an investment with a higher return than the interest you are paying, you will make money from your equity.

Lenders sell money. That's their business. They provide money to people who need capital. They charge interest, but you dont have to make the assumption that interest is your foe. Many major coprorate, financial and even church institutions use debt managment to accomplish their goals, even though they may have plenty of assets earmarked to cover their liabilities For these institutions, debt is a wise and prudent money-managment tool. It's easy to see if a bank can borrow money from the Federal Reserve at 4 or 5 percent then turn around and lend that money at 8 percent, the can make a handsome profit, especially on large sums. By separating the equity from your home, you can accomplish the same thing.

As a general rule, homes appreciate about four or five percent a year. Some years of course will be more and some less. The figure will vary from neighborhood to neighborhood, and from city to city.

Five percent doesnt really seem like that much at first. You could earn the same return with a very safe investment in treasury bills or bonds.

But take a second look…

If you bought a home that costs around $200,000 and put down 20% that would mean your initial investment would be $40,000.

At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" (ROI) would be a whopping twenty-five percent.

And because the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make.