Originally Posted By: rjundi
Despite what is posted here don't avoid purchasing a home because you'll be in debt. My only suggestion is buy in best school district if you need to unload your home or have children. Changing homes is an expensive process.
I was like you 2years out of college and walloped myself with a home loan at age 22. It turned out fruitful as apparently I bought low and sold high($100k>$210k) and put down 3%. If I stayed out of debt so to speak I would have never gained so much in 5 years time.
There is nothing wrong with purchasing a home with a mortgage if done correctly. As you found out, it's usually an appreciating asset, and a person has to pay to live somewhere (unless you're living in your grandparents basement for free) so it might as well be a mortgage rather than rent. However, the original poster is far ahead of the game by being in a position to save for his retirement, being completely out of debt, and being in a position to pick and choose the terms on which he purchases a home.
Unlike you, he'll be in a position where he will be smart enough to put more than 3% down and not get nailed with PMI, which would have negated a great deal of your appreciation.