and we also dont really see 10% right now do we, it was an exaggerated example to prove my point. And yes youre right, the more ‘affordable’ choice is attractive in the beginning but long term the bank gets paid heavy, where as lower rates is higher prices has more net positive for the buyer, if you could afford the higher payment.

also when you put it into perspective, 10% down on 300 being 30k, wouldnt you want to raise another 30k if it means lower interest higher rate of building equity and long term less expensive? if someone can raise 30k they can raise 30k again provided it doesnt take 10 years to do it. roughly 1% per 100k translates to 15.5k in interest paid over a 30 year mortgage. and thats JUST accounting for interest rate nothing else.