Reply to Did you buy a house that stretched your budget? Was it worth it?

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[quote=Anonymous]Our mortgage is a huge percentage of our take home right now. Not going to give numbers but it's a major stretch.

We did it for a few reasons:
 - we wanted to do a 15 year loan so we're not paying a mortgage into our 70s
 - kept our old house as a rental... we're actually socking away the rental income into a separate account - haven't touched it yet but it's there if we need it. The old house is leverage as we will consider selling if we get into a situation where we need cash - we probably have $300k equity in it that we could roll into the new mortgage and make the monthly payments much more manageable. Alternatively we may pay it off and that will give us a couple thousand $$ better cash flow every month. 
 - after a sizeable down payment still have a considerable nest egg in savings and investments that we can tap into (even monthly) if we need to

Our budget probably has us at negative cash flow, but the first year in the new house we've been able to avoid dipping into savings. A decent bonus and a tax refund came around the time things looked to get tight. It makes me a little nervous but we haven't really adjusted our lifestyle (which is pretty frugal anyhow). Just moving less to savings every month but we're still maxing out 401k, contributing to 529, and have plenty in reserves so I'm not sure what we need to put extra into savings for anyhow... 
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