Lot's of good stuff here, I would add that I hope any passive readers are using some of the examples to help them think about what is most applicable. Homes are important but tricky assets. A co-worker of mine for example bought his first house midway through his second year of teaching, and sold it just over a year later out of sheer luck. He actually moved because of his wife to rural MN and needed to sell, but because they had looked originally in the middle of winter they had effectively bought the house at a discount, so even with the short turn around they more than made enough to cover closing costs and turn around and buy 80 acres. It worked out incredibly well, but I think it is way more common that moving forces people into suboptimal decisions on selling the home. So factoring in the smaller liquidity is important in how one approaches the mortgage. When we moved to MN 20+ years ago it was at the tail end of a housing boom, and we bought at 5% down, FHA and 7% interest. In a year we were able to refi, get rid of the PMI due to home value increase alone and borrow in a special low-income program for a bunch of repairs and kept the total payment the same. On the other hand our value had dropped off enough by 2008 that we were probably back to just 5-10% equity. By 2015 though we were hitting closer to peak earning years and we would have had the house paid off easily by now except we decided to invest in our retirement home. In many ways the big value in our first house has been that it's cost of ownership has been way less than inflation. My current payment is what we were paying 20 years ago so that's pretty huge. The point I'm hoping to get across is that when it comes to think about housing investment risk make sure you build in flexibility for changing circumstances or plans. We've changed our thinking at least 4 or 5 times over the years and flexibility is a tough thing to quantitate.