East coast, I wouldn't buy a thing.

Midwest, well, I'm in process of buying (I should own free and clear within five years, or less) and it's marginal whether I'll get a mortgage deduction this next year.

Assuming a mortgage is (was) to me, a great deal. Got the house, minimal closing costs, etc.

snort here I am acting like a financial advisor. Hell, look at the cost, look at your finances, look at what it costs to rent vs. a mortgage payment, make your choice. When I moved into my house, my 2-room apartment was $415 a month, I was able to assume the mortgage on this house for $600 a month (but then I also started to get the fed tax deduction). 3-room house with half-basement, better than an apartment, I don't have neighbors playing stereos at full volume, have my own washer and dryer, etc. etc.

I love my house, I'd never be able to fit all my junk back into an apartment. And it makes financial sense, for me. But you may be in an entirely different situation.