Davelj, you scenario works only if you have a holding period of 10 years or more.
If you need to move, the transaction costs will kill you if your house is down 10% from purchase price.
Also make sure you have solid income so you can take advantage of mortgage interest deduction. If you’re out of a job, even for a few months, and trying to sell, then you’ll get a double whammy — selling costs and loss of tax advantage, which effective hikes you house payments at the worst of times.
Those are the things people used to worry about in the 80s and 90s downturns.
