If you have savings other than the 20% downpay, $400K should be ok if you don't spend much money on other things.  But at this point you may want to think whether you can pay the mortgage if one of you loses your jobs.  I've seen people forced to sell their homes in the last recession.   If you have at least one year of expenses in savings other than the down payment, and you're getting good pay raises every year, it's Ok.   (I tend to be over-conservative.)