1) Are you itemizing on Schedule A now? If not, don’t forget your and you’re wife’s standard deductions when calculating the tax savings.
Look at your incremental tax deduction due to paying mortgage interest. You may be overestimating your tax savings. Standard deduction for couple is $10,700 so only the incremental deduction amount over and above that would result in tax savings.
2) What about the opportunity costs of your downpayment. You don’t think that housing increase in the next 5 years. But surely that nest-egg would grow if you invested it wisely.
3) The difference between buy and rent, could be invested to grow your nest egg even more.
4) Don’t forget maintenance. Home depot, plumbing repair, replacing carpet, etc.. can add up.
