Sell our home to have smaller mortgage (23% more than average!) and contribute more $ to retirement?

We are currently paying 23% more than national average for our mortgage and our equity loan. Sell home to downsize mortgage? We really want to build up our 401K, IRARoth, emergency funds, etc. We were laid off 4 times in 7 years and used 401 and equity to pay for home, etc. We love our area but need to think of our future. Any advice or your stories would help! Thanks!Sell our home to have smaller mortgage (23% more than average!) and contribute more $ to retirement?
Don't compare your mortgage to the national average.


You need to compare your mortgage to your own income to see if it's too much.


A general rule of thumb is that your mortgage shouldn't be more than 25% of your take-home pay (33% if you want to stretch)





If you've had to tap into a 401K, then I think you have too much in retirement and not enough of an emergency fund (cash in the bank)





I suggest the Dave Ramsey approach, here's his plan in detail:





Step 1: Get a $1,000 baby emergency fund.


Step 2: Pay off all the debts.


Step 3: Finish the emergency fund (6 months expenses)


Step 4: 15% to retirement


Step 5: College fund


Step 6: Pay off the house


Step 7: Enjoy being rich.