DH and I are starting to talk about buying a new house - we hate living in a condo association and when baby #2 comes along we'd really like to have one more bedroom and our own backyard. I'm curious what percentage of your gross pay your mortgage payment is (including insurance & taxes)? Ours is currently only about 15% with no other debt, and I'm trying to figure out how anyone could pay significantly more than that when you factor childcare expenses, retirement savings, and college savings into the budget. Realistically we will need to take on a slightly larger payment to move, and I'd like to think we can manage it - we live very comfortably otherwise and could definitely cut a few corners for a year until kids are in school and we don't have daycare expenses or a nanny to worry about. Reassure me that it isn't crazy to take out larger mortgage that would require more like 25% of our income?