The 4% used in the amortization schedule is for illustrative purposes only.  It has no bearing on any actual numbers and only serves as an estimate.  Many homes see a higher appreciation rate, and some never see any appreciation.  Using an amortization schedule, your lender can alter that number to 2% or 0% when they run the comparisons if you want to see what the numbers look like under other circumstances.  The market sets the value of your home, not your estimates.  There is no way the lender or anyone can now say what your home will be worth in 5 or 10 years as the market (people buying homes at that time) will dictate what they are willing to pay for homes like yours.  So, your home's value will be determined by the same thing it always has -the amount a knowledgeable buyer is willing to pay for a similar home in your area.