Ok, back to the tax incentives.
The US tax code, 26 USC, is highly biased towards home owners.
That is why a straight analysis of the costs will not be accurate.
The interest on your loan, and your property tax, are both deductible. Depending on your marginal tax rate, that could be substantial.
Of course, market conditions change, and it may not be a good idea right now, but generally, home ownership is a good idea, and you should never pay it off, since then you lose the interest benefits.
It is basically a subsidized loan from the IRS.