[Ryno]

Given the numbers you quoted, renting is way >>> buying without considerable continued appreciation. The tax deduction on mortgages is only up to 1 buck and you haven't mentioned maintenance which is another 1500 or so per month given the $$ range you are looking at.

With kids, yeah, you want the security of determining where you live through ownership, but in terms of pure financials, renting looks better right now. Do a total cost to own analysis, that includes passing up 5% on TBills risk free for whatever you put down.