<prompt> Human: I am hoping to relieve some stress and gain perspective from people who have gone through this before. My wife and I are planning on buying a house that is under contract for 405,000 and we are putting 20 down 81,000. With 6000 in closing costs and the need to keep some money in savings we are at a 90,000 payments going out this month. We have a combined income of 105,000 and it is projected to increase by 20K this year. We have 1200 in debt payments each month law school loans and car payment My concern is that we are going from 69,000 in savings and 91,000 in retirement accounts pulling from this with no tax or penalties down to 5,000 in savings and 62,000 in retirement accounts. I am 31 and my wife is 34. We want to make sure that we fund our retirement accounts fully each year, and it is getting to the point where our bills are making us budget much more strictly and scrutinizing our spending. If you have advice or wisdom it would be appreciated. For reference, we bought a house in a nice neighborhood in north Tacoma, Washington about 40 minutes south of Seattle. ThanksAssistant: How much do you owe in student loan debt? 1200month is a lot of debt payments...If it was me, Id knock that student loan debt out before plunking 81,000 down on a house and keeping the student loan debt around.If youre dead set on buying the house, I would absolutely not touch the retirement account to fund a down payment. The future benefit youre giving up here FAR outweighs the down payment. I get youre going for 20 for no PMI, but youre literally costing yourself hundreds of thousands of dollars in future retirement funds to avoid PMI. Its not worth it.If it was me, I wouldnt do it just yet. Get that debt knocked out and get a down payment saved up outside your retirement accounts and then pull the trigger.If you close on that house and only have 5,000 in cash with all of those obligations, youre going to find emergencies quite a bit more often than they used to happen.Basis for my opinion: I bought a house at 27 and put every dime I had liquid but nothing from retirement in to the down payment to hit the 20. As soon as I moved in, I discovered the house needed about 5,000 worth of work the inspection missed and wasnt covered by the home warranty. It made for quite a terrible next six months.My two cents.Human: Thanks for your notes. Our debt payments are 900 in student loans and 213 in a car payment. Law school is expensive and we are not doing an income based repayment as we want to get out of them as soon as possible. We spent 70,000 to pay them down from their original monthly payment of 1,500 a month. PMI is a waste of money, yet we live in a very expensive housing and rental market. The retirement account cannot be added too as it was an inheritance that we have had for a while. We do fund traditional and Roth IRAs, and my wife has a pension working through the county.  <response>: Even if the retirement accounts are from an inheritance, youre still giving up tax-prefered growth to pull the money now...but...One idea: pull all the inheritance out, pay off your student loans, and get yourself in a position to buy the house much faster. Imagine having that 900month freed up once you get in that new house. And youre locking in a guaranteed 7 or so return on that money! Id love to have a guaranteed 7 return on my investments.And, if you get rid of the loans your six month emergency fund just got 5400 smaller because 900 of expenses just left. Cool, huh?Housing shouldnt be a risk because your gut being in knots sensing the risk as you are now will take all the fun out of it. I can tell youre nervous about doing this, and youre nervous for all the right reasons. 