You probably bought a much smaller place than you would have otherwise.
Make sure you add this back into your analysis.
Yes, buying what the bank says you can "afford" is definitely a dangerous game. Good point.
When I was getting a mortgage at 25, I was approved to borrow $220k. I opted to borrow only $110k.
I thought I was so smart until the mortgage needed to be paid and the payment was 25% of my take home.
Here, I thought I was a genius. Turns out, I was merely smart enough to save myself.
Which is not so bad.
Good for you. It’s amazing how folks can quote the great return being made when the market is up using funds leveraged via a mortgage.
Except when you lose a job or get laid off, unemployment covers the heat, electricity and some food plus a tank of gas...or you voluntarily leave an horrible work environment (I.e. q-u-i-t)...and then not having a mortgage payment or rent is a lifesaver. Been there, done that with DH more than once.
So I say, you and your wife go ahead and do the math. Don’t forget to include the lack of closing costs to secure the loan when you bought. Sincerely, I hope that as time passes you’ll both come to appreciate that true ownership offers You incredible freedoms: you can sell whether the market is up or down, sell and use that appreciation for your next place, invest your would-be payment, take a trip or enjoy little extras with the extra money, make needed repairs or desired updates... or save up for the next purchase. And sleep well at night knowing that if the stock market tanks and one of you loses a job and the other one is on maternity leave or between jobs, you’ll not be worrying about your house being foreclosed on.
Sorry for the rant. Folks who tout the wonders of mortgages and leveraged money (have 5 rentals that are “owned”, but every single one has a loan on it - what a mess, sure it’s “cash flow positive”, they say - so what, that blasted payment is Still Due). Those folks have not had hard times where your cash is precious, jobs few, and you must find a way to get through for your family, and everyone around you is in the same boat. I don’t know the year, but anybody remember when pharma hit a bad spot and all the big ones were laying off 1000s of highly educated, highly skilled scientists? No? It was bad. A PhD with 15 years experience would be willing to work as a lab tech. And good luck competing with them if you’re fresh out of school...
****The people with loans on real estate probably make up the vast majority of everyone you know...people who own aren’t necessarily fact....so take what others say with a heap of salt. Yes, I am biased by the fires of experience. ****