<prompt> Human: Townhouse of interest: 340K 2 beds 3 baths, Extremely good location schools, in New JerseyAge: Both of us 27 years oldSalary combined: 100K partner part time in school, after finishing income should rise to 130K or more Savings: 105KRetirement: 80KDebtExpenses: 0With the 20 down payment this would leave us with 25K savings. From what Ive been reading though the max price we should be looking at is 3x income, so 300k. The place we are looking at is 340K in a extremely good location. What does pf think? Should we wait a little more before taking on a mortgage? Im afraid if I do though the rising interest rate will negate any savings throughout the year due to the fed. mort. increase. I could trade off the house price for a meh neighborhood if that helps.  <response>: I thought the rule of thumb is limit yourself to a house price of 2.5 times your annual gross income; but maybe thats changed over the years. 