<prompt> Human: Here are my financial details: Debt: 0 fortunate to have no student loans, car payment, etc. Cash: 14,000 Investments: 42,000 mutual fundsstocks in Scottrade 401k and Roth: 71,500I think its probably a stretch and the 125,000 range is more ideal but Id like to get your thoughts. Looking at Zillow, it says I can afford a 305,000 mortgage which seems way too high. My plan would be to sell my stocks in Scottrade and put down 40,000 to avoid PMI. I currently contribute 22 to my 401k and max out my Roth IRA each year. I might slightly reduce my 401k contribution if I were to buy.I would have 1 roommate that would pay around 500 a month, but I know I shouldnt count on that as a reason to buy.So is this way out of my price range? What do you think my maximum mortgage should be? EDIT: I forgot about taking money out of my Roth. I was reading about first-time home buyers being able to take out up to 10k without penalty as long as the account has been open for 5 years, which it has. Do you all think it would be a good idea to take 10,000 out of my Roth for a house purchase?Assistant: If youre ok with wiping out your entire taxable investment account then the answer is yes, you can afford this. But just barely. Youre putting in 12k in the 401k per year, which means youre making taxable 45k. I dont know what statemunicipality you live in so Ill just use my own as a reference. Where I live Pittsburgh someone making 45k taxable income receives take home pay of 2833 per month. Then you said youre maxing the Roth IRA so subtract another 458 per month. Now youre left with available cash flow of 2375. If you do 15 year fixed with 20 down and 3 interest your payments are going to be at least 1300.Whats left over at the end of the month is basically about 1000 extra that you can save, which isnt much. You could do this, but I imagine it would be difficult to save up for other purchases like a car or vacation in any reasonable amount of time while still taking care of unexpected expenses that pop up now and then.Human: Thanks for breaking it out like that. Thinking that way, it does seem a little costly for a 15 year mortgage. Thats a large percentage of my take home pay... Assistant: You dont necessarily have to get a 15-year mortgage. Its often recommended due to the lower interest rate and shorter term... but most first-time home buyers have longer terms than that usually 30 years. 15-year loans tend to be more popular when you refinance.Note: If you want to pay off your mortgage sooner, feel free to pay extra towards the principal every month.Human: True. The extra monthly payment for a 15 yr vs a 30 yr is about 415. The thought of having 30 years of debt doesnt sit well with me. I know I could refinance or make additional payments, but Id probably go with a 15 year if I could afford it.  <response>: You can amortize a 30 year loan to pay it off in 15 years voluntary higher monthly payments. The downside is that a 30 year loan will have slightly higher interest rates. The plus side is if you run into financial issues you can default back to the lower 30 year monthly payment until the cash flow returns. 