<prompt> Human: Im 25, married, living in Orange County, CA. Currently my wife and I earn a combined 130k a year. Credit score in the 800s. I received an inheritance of about 900k. Were looking at houses around 700k. Is that a reasonable amount? Our combined salaries arent super high for the area, but I hope that I will be able to draw from my inheritance to pay monthly payments.How much should I put down for a house? Ive heard 20, 25, and 40 all get you better interest rates. However, I dont see interest rates dealing with 25 and 40 down. Is a 15 year mortgage better than a 30 year mortgage?I did some quick math using numbers that I pulled off Google: Assuming my investments return 7 a year, and I put 20 down, it looks like that around year 27 the total amount that I will have in investments after a 15 year loan will surpass the amount that I have in investments after a 30 year loan, not to mention I pay about 250k less in interest total. Do these numbers sound right? Assistant: Making 130K a year, I dont think I would go beyond a mortgage of 400K. So it sounds like you are thinking about putting a substantial amount of money down.Secondly, the only real benefit to putting more money down when you have excellent credit is to avoid PMI and to avoid taking out a Jumbo loan. Otherwise, the interest rate wont get any better. My wife and I close on our house next week and our interest rate w 10 down and 20 down was identical. Third, obviously a 15 year loan is lower interest so therefore better. But given your income, I cant imagine you wanting to do a 15 year loan unless you want to put like 500K down.Human: Why cant I get a loan bigger than 400k? If the interest I earn through investments is more than the interest than I owe on the loan, doesnt it make sense to take out as big of a loan as possible?Or are there regulatory rules concerning the max loan you can take out on a house?Assistant: I mean... you just dont have the income to support much more. Obviously you have cash in the bank, so you can be aggressive. But signing up for a mortgage you know will leave you in the negative sounds like a bad idea. I would not be even considering offsetting mortgage payments with capital gains. Human: He wouldnt have to offset with capital gains, he could offset with principal if necessary. Personally I would go for 2037; down, 30 year term, if he qualifies. If not go for as much as they will qualify him for. It doesnt matter if his income doesnt support the payments because he has enough principal to pay it off any time. Invest the money in a taxable portfolio, max out retirement accounts every year. Liquidate funds from your taxable account as necessary to subsidize mortgage payments. Eventually youll be left with a paid off house and a solid retirement account.Assistant: For further information: we already contribute the max to our retirement accounts every year. The 130k we earn doesnt include the interest from the investment account.  <response>: Nobody considers investment account interest in their salary. 