Ms. Casteel's rationale deserves some examination. Although owning a home through a mortgage does result in debt, she should keep in mind that whether you pay rent or a mortgage payment, you still have to pay to have a roof over your head. I would advise Ms. Casteel to compare her monthly rent payment to a mortgage payment net of tax. Rent expense is not tax deductible, but mortgage interest is. Further, mortgage interest rates are at a historical low, and so are home prices. Ms. Casteel is not likely to relocate from Cincinnati, making a home investment a prudent choice. Lastly, if Ms. Casteel is concerned about securing a mortgage, she should look into tax laws allowing her to use certain retirement savings for first-time home buyers. This would allow her to make a 20 percent deposit on a home priced at around $100,000, which is realistic in Cincinnati, and more likely that a bank would give her a mortgage.
The link to the article: http://www.businessweek.com/news/2012-02-29/student-loans-near-1-trillion-hurting-young-buyers-mortgages.html