If you have the 20% down payment, does it make sense to take 30 year mortgage and use money at mortgage payments rather than rent paid? Potential downsides?

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You'll be paying more interest, you'd be paying PMI and you'd have a higher monthly payment commitment for life of the loan unless your loan company allows you to qualify for and pay for recasting.

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Ah I see. I thought they were asking about taking the 20% and putting it towards monthly mortgage payments instead of a down payment.

For the rent vs buy you need to do a breakeven analysis. How much are you paying rent vs the purchase price, financing, repairs, etc. How long do you plan to stay in the house. Do you plan to do upgrades and what is a reasonable expectation of appreciation (this is obviously just an educated guess). Also need to consider lost interest on otherwise investing extra money if you were paying less on monthly rent. Do some research for different calculators and factors to use as starting points.

From calculations in my area I found that it was usually better to buy if you were staying in the house 5-10+ years, expected the home to appreciate at least somewhat and/or you weren't spending a lot more on the monthly mortgage payments vs monthly rent.

Your mortgage payment should be much lower than rent as you now have to take on all repairs (75% is a good guideline), but you will also build equity!
Makes sense unless you plan to move soon.

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Yes moved from a rental to our own house 5 years ago. Compared to our rental before it was a good investment with ~15% return yearly (if sold now - money is locked up of course)

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