re: Opinion on buying a larger home within budget - sacrificing location.

You may not have car notes right now but you still have to pay for cars every now and then. Either that money comes out of your paycheck as cash to a savings account or it goes to a loan payment. Regardless, you have to budget for getting a new-to-you (new or used) car every now and then.

Be sure to look at increased utility costs, maintenance costs, repair costs, etc. associated with a larger home. It isn't just the mortgage payment that will go up. Everything associated with the house will go up.