And rationality.  

Keep in mind, the ways you suggested (borrowing) will also contribute to your Debt to Income ration which effects your borrowing power when trying to get a mortgage. 

“But logic, rationality, and self-interest haven’t always factored into how BOA has handled the continued fallout of the mortgage crisis eight years after the bill started coming due for the bank’s shady and shaky subprime lending spree.

You are being charged pro-rations on property taxes and insurance, and additional 2 months are being escrowed as well.The only thing high is the underwriting fee of the lender so your other option is to shop around for another lender.

Normally it's not a big deal, escrow and lenders overcharge and then refund the borrower all the time - much less work to write a refund check than to claw funds from someone after a transaction closes, so this is rational and normally not a big deal.

A couple of things:1 - The problem with rationalizing a bad deal by saying you will be living in it and saving money on your expenses is what happens when you don't want to live there anymore?

He was shocked, and as one can surmise from the fact that his original listing price was 35% over what it was appraised at (so seller is probably not being rational about his overpriced property), that he flipped out.

My logical and rational mind tells me that I do need to let this go and move on.To answer @Brit F. above, we can't really move right now because a lot of the money we had to invest is tied into the property we ended up buying and doing ground-up on.

For a rational player to buy a home, it must be superior to other alternatives. 

I have a great credit score and dti ration is great as well but the 3 banks I have filed applicatons with are telling me they can't help me due to the age.