How much house can I afford?

Renting a two-bedroom apartment around here runs about $750/month, so a mortgage of $825 is actually amazingly low. We bought a practically rock-bottom house with 29% down, so our PITI is very low.

After we moved in, during one of our first encounters with our new neighbor, she bragged that she only pays $1,200 per month for her house. I didn't have the heart to tell her what we pay, so I was just like, "Nice, well done."

I think I just need to bite the bullet and keep going. I think I'll feel better about the mortgage when we hit some milestones paying it off, like having the interest portion drop below $400, and the outstanding balance drop below $100,000, etc.

/r/personalfinance Thread Parent