The other factor in this whole scenario is INFLATION.... and over a 15 or 30 life of a mortgage -- a fixed rate mortgage.... you'd be paying that fixed rate with money you'd be making 20 years from now... so it should be a far lower % of your income as it stays the same and your income increases.
But really --- we're all just doing a "what if" and this needs to be worked out in real math with an accountant.
My last house I paid all cash.... just over 2MM.... That money at 5% would EARN 100K per year TAX FREE.... and if you factor in the deduction - my real rate of interest might have been 2% by using the deduction to offset earned income... so in fact I should have had a mortgage and I'd have been making money on that borrowed money. My accountant finally convinced me I was being an idiot just for the privilege of saying "it's all mine".
In my case -- I can borrow cash on cash -- with a super low interest rate and what I pay out is half what I actually make on the amount. Again - this all needs to be worked out in detail with an accountant and an individuals income.
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