As for cost effectiveness... Let's say you're looking at a $150,000 house with an 8% mortgage for 20 years. 10% down payment.

Are interest rates up that much already?

Rough numbers, you're looking at about $1025 month in payments, with total interest coming to about $108,000 on the $135,000 principal. Let's add another $100 a month for property taxes,

My $53k house has ~$900 annually in property taxes; $100/mo sounds low but I suppose it depends where.