The website you spoke of used a $200,000 house as an example. In this area that is not a good example. The average home sale is $97,000 but that is not what most first time home buyers spend. Let me give you an actual example. I sold a home to a couple that have lived in the same house for 10 years and have paid $500 a month for rent. We were able to find a wonderful home for $58,000. Nice updated 2 bedroom with fenced yard and 1.5 car detached garage. There was a 3% down payment.

Principle and Interest - $365.69 at 6.5% interest

Taxes - 60.41 with no exemptions. That will go down in 2009.

Homes owners insurance - 45.00

Private Mortgage Insurance - 25.00 until 20% is paid

Total monthly payment of $496.10 plus they are able to take the taxes and interest off their yearly taxes. Less than what their rent payment was. Now they have something of value that as long as they take care of it will always have value. What is sad is that they paid $60,000 in rent. They wish they had done something sooner.

You have to make the decision if it's right for you. Are you ready to make a mortgage payment for yourself or do you want to make a mortgage payment for someone else? If the time is right...Go For It!