<prompt> Human: Hey all! So I just saw the post about buying a million dollar home and it got me thinking, when would it be ok to buy a home that price? I understand the 3x rule and have followed it in the past with success, but what if you are putting significantly more down? For example, say you are putting 40 or 50 down on a home 4x your income so that the monthly payment is a lower proportion of your take home. Is that ok? It seems like that might be the only way middle income people can buy in a high COL area. I have friends in the SF bay area that bought small houses in fringe suburbs as their first homes, put some work into them, sold them for more, and rolled that equity into the purchase of a more expensive home closer in. I guess in that scenario youd just have to look at your monthly budget to make sure your payments still fit into your plan, but is there some other reason Im missing for why you shouldnt buy a more expensive house if you have a lot to put down?  <response>: Theres a balance between putting down too much equity in your down payment, versus maximizing the utility of your loan. People like Dave Ramsey like to hark about how no loan is a good loan, but the reality is that loans are a wonderful way to maximize your returns. By putting down only 20, you allow the rest of your money to work elsewhere. If you put down too much down payment, you eat the depreciation or market fluctuation on your home a little more painfully, but will have more monthly cashflows to invest.In a best case scenario assuming 3 growth on your homes value, youd earn more by investing whatever money on top of the 20 down you have saved than by plugging it all into your house and investing your monthly excess in the market. 