As far as taxes go, there is a huge deficit and it's getting bigger. Something has to be done about that. You can either raise taxes or you can cut the size of government. Bush /cut/ taxes and /increased/ the size of government. Something's gotta give. Tax cuts aren't free money -- you gotta pay for everything somehow.

On the deductible mortgage interest side of things, it's a HUGE tax break to own a house. Unless you live somewhere that has ridiculous property taxes (which is possible -- I don't know where you are), it's completely worth it. I literally save thousands in taxes every year because of my mortgage. Not to mention your house is also an investment, so while you're paying your mortgage, the value of your house is also increasing at the same time. Basically, it's just a good idea all around to buy a house. If one of your jobs offers a 401k, I would do that too. And you should consider starting your own business on the side -- do /anything/ it doesn't matter. The US tax system is designed to reward entrepreneurship. A world of write-offs opens up to you when you have your own business -- your home office (which includes % of mortgage interest again, % of utilities, etc), business-related purchases, etc. Not to mention you might actually be able to make some money out of whatever you decide to do. Of course you're working two jobs, so I don't know how feasible this one would be for you, but it's something to keep in the back of your mind.

ms