I know people with 500k and million dollar mortgages too but that doesnt mean Im jumping into a 200k one myself if I can help it. I am personally very debt averse though, I hate it, its necessary thing but I try to minimize it as best I can. I have a house payment because you basically need one...I have a car payment because I do like cars and I need something reliable. I don't want to be spending a ton of time fixing something old if I don't have to. Even the car payment is about to go though because we have 2 and Im close to work. I can get by with a "beater" or something a touch more impractical, and cheaper, than what Im driving now. the other option which may be doable is get the house, finance it and then just try to pay it off as fast as you can. That way you get the best of both worlds, but that option takes more discipline for most people.