Tax savings is overstated because the mortgage interest deduction should be not the total amount of interest but the delta between the standard deduction ($10,000 for married) and itemnized deduction. Interest the first year on that $480,000 loan is about $32,250 + $7500 tax = $39,750. Your “extra” tax deduction is therefore $29,750 for a tax savings of $10,115/year at 34% or $843 per month.
The buy/rent analyses I’ve seen tend to overstate the potential tax savings, especially for people in the lower and middle income tiers with few itemized deductions other than interest and property taxes.
Most buyers don’t understand any of this and take for granted whatever the loan officer (working in concert with the RE agent) tells them.
