[quote=temeculaguy]the question boils down to “Deal or dream.” [/quote]
I think it depends on what would you spend the difference on. If your passion is, say, cars and the cheaper house will let you lease that M6 you were drooling about, that’s one thing. If the only difference will be that your monthly savings will increase from $1500 to $1900, I’d stick with the nicer house.
Once in my life I rented the “deal” home, because I thought I’d only need it for 6-7 months. The worst mistake ever, I was really unhappy there.