<prompt> Human: Long Time Lurker. Please help us navigate this. I know this is in no way our optimal position to be in, but here goes. Title says it all. We recently came across a house we think we can afford in my wifes dream neighborhood. It is her dream neighborhood because it is next to her parents and grandparents 45 secs driving distance away. We werent really interested in moving but we got a call from the realtor to let us know this house became available. Now lets get into the details. Gross Yearly Combined Income - 130,000 Bills - Mortgage - 1200 20 Year loan at 3.7, 40k in equity. - Child Care - 1200 a month for 2 kids - Car - 284 Per month 2.5 for 5 years Just bought a new used car for the family 15k Our other car is payed off and wife drives a company car for work. - Ins - 900 Every 6 months - Cell - 200 a month - includes 2 Phones financed at 0 for 2 years. - Gas - Only me about 100 bucks a month estimated high - Power - 170 - Food - 600 a month Packed lunches for 34 family members - Entertainment - 100 - Credit Card - 1000 we just got back from vacation. - Pet Bill - 1200 at 0 for 4 months. Dog was bit by a copperhead. No interest if paid off in 4 months through the vet. - Student Loans - 1,000 Medical FieldSavings - 4000With that said, I personally dont feel that we can afford this house in our current state. However, I will argue for it for my wifes sake. Our current location has our kids attending one of the worst elementary schools in the county 310 low income, reduced lunch, high minority school, inner city, etc. Middle and High school are fine, but elementary is sub par to say the least. Moving puts them in an 810 elementary school. We are also having to pay child care for them at the moment since we get home 1 hour too late to catch the bus. Moving into this house doubles our mortgage to roughly 2300 - 2600 give or take, but would give us a chance to drop the day care since the grandparents can pick the kids up at the bus stop. Our question is, do we continue to pay the mortgage child care for the next 5 years or invest that money we are already spending into a house. The house is also one of the cheapest houses in the neighborhood. Most others range between 400 - 600kDo your thing PF.  <response>: Why do you have only 4K savings with an income that high? That alone tells me you are already overspending and cant afford any more house then you already have. Plus, before buying a house your savings should be at least 40K and thats assuming your 40K equity is going for toward a down payment. You are living very close to the edge. 