The New York Times has a very good article to help you make that decision along with calculators.
You will need to calculate:Mortgage and interest
Property tax
Home Insurance
PMI (Private Mortgage Insurance) if your down payment is less than 20% of house price*
Maintenance
*Once the equity in your house is over 20% you can ask the loan company to remove the PMI (it doesn't happen automatically)
Don't just go with the realtor's recommendation for a loan. Shop around and compare interest rates and closing costs.
