<prompt> Human: Long time listener, first time caller.My wife and I are in escrow on a home in Los Angeles that we can afford. Its our first. Were currently renting.We would be taking out a mortgage to pay for the house and a Home Equity Line of Credit to help with the down payment an 801010 situation.Aside from two small car loans at 2 interest, we have no other debt and have 401ks and IRAs into which were fortunate enough to be able to make the maximum allowed contributions each year. The 10 cash down payment would almost totally wipe out our cash savings though.The home needs work and while affordable, its not a bargain. Its in a good area and would probably be as solid an investment as a home could be - all things being equal.Given the results of tonight and the unrest it seems to threaten, we wonder if its not the time to put down roots and take on so much debt. We wonder if maybe staying liquid and continuing to rent is wise. My financially-conservative self thinks its best to wait a year or two and see what happens. But Ive been working hard to afford a home in this market and were finally there. I believe for people like us who dont come from money but have been fortunate enough to make some, a house is the most important investment well make and could pay dividends for years to come.We have stable jobs and both have professional degrees but... who knows.Its hard to walk away and a big part of me wonders if Im overreacting it is 3am after all and I cant sleep.What are the subs thoughts?Edit: Thanks for the replies. People are zeroing in on our cash situation and thats fair. I should add that my wife and I will be paid bonuses at years end that will create sizable reserves and our mortgage payments and incomes will allow us to put away 3.5kmonth in cash. But agree that were being a little aggressive on the timing and our cash on hand. The tax deduction on the mortgage is also a big deal for us since we get hit with a massive AMT bill each year.  <response>: You cant afford it if half a downpayment wipes you out. You are still loaning out more than 80 and you still have no backup in case something breaks.Maybe if affordable means you still net 2km after all spending even being rather conservative on the assumptions.If affordable means you are down to 3 digits or less left over at the end of the month, I would say thats not affording it range.Still, I wouldnt say this is a good time to back out either. The sky is indeed falling and all, but you still have to have a place to live. Your house value may drop dramatically and you could be well underwater from day 1, but that by itself isnt a good reason to cut and run. The house is just as good for you to live in if its worth 100,000 less the day after you move in. Houses arent places to be trying to get large investment gains anyway. You live in it and if you at some point have to move you hope to at least get a lot of that back that you put in, maybe with some extra if you are lucky. 