<prompt> Human: Hi PF! I am a first time homebuyer and have found a townhouse 3bd3bath with a price of 440K. My wife and I make a combined 115K Gross and net roughly 6900 monthly. We have 35K in savings and 25K in a 401K that we can borrow 50 from. We have been pre-approved for 424K conforming loan . Breakdown of monthly payment quotes: PI - 2,100 Property Tax - 450 PMI - 300 HOA - 240 Insurance - 60 Total - 3,150 We have NO debt student loans, cc, etc other than my wifes leased car at 190 a month. My car is fully paid off last year. Conventional wisdom says I should not exceed 30 of net income for mortgage 2,100month, but the townhome is in a great neighborhood, built in 2015, and we both have steady jobs with yearly increases. Important note: my brother will be moving in and paying 600month in rent as well. Question for PF: Should I borrow from 401K to increase my downpayment to 10 if i get .25 lower interest? i.e. 4.5 to 4.25 Overall, how does this purchase sound like? Is there anything im missing? We are looking to sign the contract soon offer will be accepted because we are pre-approved with the sellers desired lender and its a first come first serve and I want to make sure I have my ducks in a row. First time homebuyer and Im nervous! Thanks PF!  <response>: OP, I wouldnt even buy a house for the amount I got pre approved for. I would purchase at way less that way your mortgage isnt a high percentage of your income. 