What do you think the payment would be on a $5,000 mortgage loan?
How much would your payment increase if you increased your mortgage $5,000 over 30 years?
You have to consider interest rate first of all.
In this example I'm using 5%.
a) If you increased your mortgage $5,000, your payment would increase by $26.74
b) Also consider: if you are buying a bigger house, you are probably paying more in real estate taxes AND insurance.
c) And if there is mortgage insurance on the loan, that will increase too.
d) And the worst of it? The worst is that you are making a total of $9662.79 in payments over 30 years, $4662.79 of that is interest!
So it's not just a couple bucks a month.. It's more than that.. And worth considering when refinancing or purchasing a new home.