SD R, I didn’t use 120k for both case. I use 20% down, so I guess you can say the $600k case, the buy would need to come in w/ another $20k. What I was trying to illustrate is the saving you get from taxes might be less than the interest you have to pay over 30 years. So, one have to calculate all the possible scenario based on what they want to do w/ the house in the future.

I totally agree that in a rising rate environment, cash is king. Imagine if rates goes to 15% and to maintain the same monthly payment, price would have to drop to $270k. That $120k will be 44% down payment instead of only 20%. However, this doesn’t count in monthly payment tracking inflation. If monthly payment track inflation, then price would drop less.

sdduuuude, refi opportunity is really depend on when you buy and future rates. Lets say you buy @7.5% in 2 years but it won’t get below 7.5% again for 30+ years, then the refi opportunity is 0% just like if you buy right now at 5%. If you buy when rates are at its peak, then your probability of refi is much much higher.