> The biggest determinant of homes people buy is not the total price, but rather how much cash do they need for down payment, and what will the monthly payment

> The biggest determinant of homes people buy is not the total price, but rather how much cash do they need for down payment, and what will the monthly payment be. I agree this is mostly how people decide, but it's not necessarily a good idea. buying a very expensive home at historically low interest rates is a significant risk. there's a good chance you get upside-down on that loan over a 15-30 year period. better hope you don't get divorced, lose your job, or need to relocate during that period.