What goes up always comes down. Don’t listen to realtors and mortgage people their opinion. It will always be the same answer is some manner. Such as “house prices always go up”. “Sure the rate is a little higher and you will have the adjustable rate loan. But as you know, rates are pretty low and should stay that way and houses always go up. In a few years refinance that ballon mortgage with a nice low rate…….,,,This is a mashup of a few of the things I have heard ridiculous real estate agents or mortgage loan officers say. Don’t trust the realtor, their goals are not your goals. Their only goal that matters is their pocket. They want to sell you a home and quickly, before you find another realtor. The mortgage guys just what’s to take the largest mortgage you qualify for as his compensation is directly tied to how large the loan is. So there you have it, your home buying team. They have no alignment with your values or finances. You want to get the right house at the right price (realtor wants the house to sell at its current most price or higher. They will actually book other clients to come by a house your looking at while you are there. They do this to force a sense of “urgency” into the transaction. Now all you will think another is getting that perfect house at any price. The realtor wants a bidding war on their properties (realtor, mtg company and owner win, you loose) they may even invite other clients ti see the property while you are there. They will say things like “this houses will be gone soon. The mortgage guy comes in drops you into any program he can qualify your for at the “Best Pricing”. Best pricing for the mortgage broker is any loan you qualify for that gives him points (more commission) for putting you into a higher interest rate or certain program. Be careful, the people who are dedicated to your success are not aligned with your goals. Maybe one selling you a house or mortgage. Every other goal in the purchase of that house or of you can truly afford it make no difference to them!!