My house is my home. It’s not a stopping point on some journey to someplace else. The neighborhood was carefully chose, we renovated an existing house, so the design and layout were chosen to fit on the piece of land the original house sat on. We bought with the idea that we’ll still be in the house in 30 years, indeed that it would someday pass to our kids. So we spent more on the renovation than the house is really worth, so what? We’re not in this to flip it. We can grow with the house…getting a smaller home for less money for a shorter loan would have gotten us a house that couldn’t grow with us. That doesn’t make any sense at all.
If you’re single and just looking to get something so you’re not renting, then maybe it makes sense, but not if you have a family and are setting down roots in an area.
Also you do know that whatever interest you pay on your loan can be deducted from your gross income during tax time, right? So if I’ve paid $16K interest on my first mortgage, and $3K on my second, I can take $19K right off of my income. So instead of making $80K for tax purposes, I make $61K. You see the benefit?