If you are going to have a payment of less than 1500 a month for a house on 3.2 ares and 3200 sq feet, I have a feeling it is far removed from the bubble areas and probably is safe to buy as far as the big picture goes.
If it is not too far, percent wise, from 2002 prices I would buy and finance as much as possible.
The reason to finance the max is these rates are currently some of the lowest in nearly a hundred years and should inflation come to pass (and I think it probably will) inflation will basically devalue what your owe in “real dollars” and you ought to be able to make far more on the invested money you would have put down on the home, more than the 5% you are paying on the mortgage anyhow, should that scenerio play out.
Besides, as in my original post, I don’t know how this will play out but what I do know is that 600K for a dump is out of line and you would be a fool to buy when said dump was 175K in 2000.
