<prompt> Human: Hello! Us:Early 30s couple, 2 kids - 5 years and 3 monthsMe, ft - 80kWife, pt - 35k65k retirement assets140k home equity12k cash assets2k college savings11k student loan debtx200B;We are selling our old house, currently under contract for 335k, Bought new house for 415k. Currently refinancing family bridge loan to new house. We are very fortunate to have 140k in equity from the previous house net after commissions, concessions, closing costs to apply to the new house. Wife wants to stay at home with our infant which puts me on edge but is the right decision for the family. Under this situation we will likely cash flow neutral while she is out of work but there is risk for slight cash flow negative over this time.I am and have not been happy with our cashemergency fund situation we got a late start to our careers and had kids before building a nest egg. For emergency fund and peace of my mind, I want to put away 25k out of the 140k from the sale of the old house note we will immediately spend 5k of this on new house repairs plus a few furnishings, putting our emergency fundrainy day at about 30k which is 3-6 months expenses plus money for homecar repair.My wife, who is not financially savvy but is technically correct, does not like the idea of borrowing the additional 25k over 30 years. She is right that we will pay more interest over the 30 but with that logic why not throw every penny we have in checking at the mortgage? My thought is that the sale proceeds give us a one time ability to fix our cash position, which is deficient. Plus we are going to need some for insurance while she is out of work. When she goes back to work in the future, we can pay down the mortgage.FYI The monthly mortgage payment goes up about 100-125 bucks due to cashing out the 25k. I alone will bring home 4600mo and i anticipate we will spend about 4500mo with the new mortgage, bills, etc.x200B;Would love to hear your thoughts.EDITwife to stay at home for roughly 12 to 15 Months and then back to work part time. We can do this short term but I agree long term is not sustainable. Thanks for the concern. More curious to hear thoughts about the cash out vs down payment given the situation.Mortgage 290k, monthly pti at 1850. 290803.6, 290115 2.5. I do qualify under 2836 with my income alone.Assistant: Wife wants to stay at home with our infant which puts me on edge but is the right decision for the family. Under this situation we will likely cash flow neutral while she is out of work but there is risk for slight cash flow negative over this time.You bought a house that was at the tippy top of your 115k salary, yet you want to now try to support that on only 80k? The absolute most house you should get with 80k is 320k 4x salary, but you really shouldnt do more than 3x 240k. The bank wouldve never lent you as much if they wouldve known your wife was planning on leaving her job.Why wasnt this discussed before you purchased a house out of that price range? Your only option is for you to take on a second job to help support the fact that youre now saving 0. Will you see your wife and family less? Yes. But its better than foreclosing or going bankrupt if something bad were to happen. You guys need a buffer. Your expenses shouldnt exceed 70 of your take home. Theyre at 100.Yeah, youll end up paying more in the mortgage, but you will need an emergency fund and contingency with a new house. Thats what happens when you end up house poor. You pay more.Im not trying to be mean, but you need to really understand how bad this financial decision was for you guys, and how its going to end up hurting you in the long run. Human: I shit you not we are qualified for both mortgages on the 115 which is nuts.  <response>: The bank saying that you are qualified doesnt mean that its a wise thing to do.You need to look at reducing all possible expenses until your wife decides to go back to work. That may not happen until your child is in school -- or it may never happen, especially if you have another child.EDIT - I see you say shell go back to work in a year. That would make a difference. 