You'd also have ~ $13,200/year in property taxes (also deductible) and should budget another ~ $4,000/year for maintenance and upkeep. Not earth shattering but

You'd also have ~ $13,200/year in property taxes (also deductible) and should budget another ~ $4,000/year for maintenance and upkeep. Not earth shattering but it does add up. There's some political risk that the Feds will eliminate or at least limit one or both of these deductions. Your basic premise is accurate which is that low rates have enabled people to stretch their incomes to meet high housing prices. Since rates have steadily fallen since the late 70s we've sort of seen this play out before, and we know how it ends: people get into trouble when they lose their jobs and can't sell their house in a down market. If you have 30 years of relatively steady employment, then you are fine.