which way to play the game?

Thrugelmir

Typhoon2000 wrote: »

4 If it falls you might be in negative equity and be unable to move or not meet the qualification requirement for any future mortgage application.

Hence the reasoning behind borrowing less and paying more. Saves interest.

The secondary issue is would the mortgage be affordable when there's dependents to support (child care costs) etc along with the likelihood of higher interest rates.

Kynthia

It's usually better to buy the best house you can afford to minimise the number of moves (and by best I mean that meets your future needs, has space to grow into and means you'll move less often not just a fancier area or better decorative order). However this doesn't work if you risk not being able to afford it if interest rates rise or fairly likely life changes happen like children and the associated reduction in income and cost of childcare, occasional short periods of unemployment, etc. Also do you want the pressure if a large mortgage that you're struggling to pay and feeling like your living to work only and having to make too many sacrifices. Therefore buy the best house you can afford, but really work out what you can afford as you'll be paying that amount for a long time.