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Buying a home is the best way for the everyday person to build wealth. Every time you make a mortgage payment, a portion of the payment goes towards your repayment of the loan, which is your principal payment and acts as a silent saving. And the other portion goes towards the interest, which is the monthly amount the bank is charging you to borrow the money. Over time, the more money that’s applied to the principle, the more you are building equity, which increases your net worth, and which you can borrow against to fund your future endeavors or cash in when you sell your property.
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