paying for a larger house payment? For the sake of fairness, though, consider what a mortgage payment would do in a mutual fund if invested every month for the next thirty years. The smartest way to buy a home is to pay cash, or limit your payment to 10 years. Pay the house off and then invest your payment until your house becomes too big for you and your kids move out (usually 15-20 years).
The reality is that living your whole life with a house payment is a really bad idea. That money would literally become millions if invested properly. So the decision really is a larger mortgage payment now with a large house when you retire. Or, millions of dollars more in your retirement account.