After getting the financial guy to run all the numbers again and discussing the fact that we don't NEED to buy more insurance because the HOA already gives us that, I agreed that we can hang in there till the next tax refund and extend ourselves a little more than is comfortable to cover the mortgage payment and tax.
It wouldn't be a problem at all if it weren't for the car I am going to have to buy soon. Mine is on the way out, and the garage thought last summer that it had no more than 2 years in it. Richard's also is dubious, even more so--it's a 1988 Honda Civic that he's trying to coax 200,000 miles out of. Now that we have further to drive to work, it's a little more crucial for him to have a workable car, though he won't need to drive as much around town as he used to. Many things are within walking distance.
And he plans to take the bus (probably with at least one transfer) at the bus stop down the block.
So for the moment, things are okay. We are proceeding toward the goal of getting the house. It is scary, of course, committing ourselves to this kind of debt, but in the long run, as everyone says, it's a good thing.