Trojan – that analysis has not worked in favor of purchasing for a while. it makes more sense to rent.
if you want to do the tax calc properly, you should probably factor in state taxes as well. also, you used an 8% tax rate which seems low. your incremental tax rate if you are looking to purchase at $750k I would assume would be at 25% or higher. you should also factor in the ‘tax savings” on the additional $8-12k that you’ll be paying in property tax. That will “save” you about $3k in federal taxes (assuming 25% tax bracket).
anyway, bottom line is that it looks like you reached the correct conclusion. The tax savings don’t make up for the additional monthly payments. that analysis tends to work out in favor of purchasing when mortgage payments are near rent levels.