I usually only hire mercs in the early game, and like many others here, I just can't resist Longbowmen and Billmen (esp. when not English), Catapults (dirt-cheap upkeep), Italian Light Infantry (best spearmen around!) and Khwarazmian Cavalry (when all the heavy cav you have are Royals, these come in handily).
I try to build specialized foreign contingents sometimes, containing many merc horse archers when Catholic or many heavy infantry (Druzhina!) when Muslim or Byzantine. I tend to find the best variety of mercs, and the most frequent refills, in provinces that are really poorly developed and don't have a big income either. Try to build Inns in Bretagne/Ireland/Norway and some Med islands, as these can be quickly relocated by sea.
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