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Thanks for the advice guys. I'll leave the funds alone, and possibly only borrow if the stars align and it won't hurt my balance while finding a cheaper home.
Moving isn't an option-I like my job (Packaging Engineer) and the wifey is planning on staying with hers for a while as well.
My main motivation is the (relatively) low interest rates, combined with lowered pricing in the area. Most of the prices appear to have dropped by 30% in the past 5-8 years.
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