Shane Jones of
"The Shane Jones Team"
Too many people in your situation would light up like a Christmas Tree and go for every cent in their house hunt and scrimp to pay for it the rest of their lives. Others decide what payment they're comfortable with and set their sites on that. I favor the 2nd approach, though it's all a matter of perspective. In a rising market, some may want to extend themselves for a few years, then downsize to gain more equity and lower payments. Of course, if interest rates rise substantially, that could backfire, depending on the numbers.
Yes, we have a tax deduction for mortgage interest that offsets how much money you put out for mortgage vs if you were renting. Currently, buying is usually the better strategy. Rents are typically higher than mortgages, especially when you take the tax deduction and equity accrual into account and realize that we're now in a rising market.