Just do all the math and see what works out best, it can vary based on your individual tax situation and if you buy the house that tax situation will change as well. Get last years tax software, get your taxes then run the two scenarios, check the fees and see which scenario wins.

Also factor in that PMI is deductable now.

Normally I would tell people to leave their retirement money alone but I like your numbers, a couple of 30 year olds sitting on 300k, nice work. Obviously you are savers, you’ll get it back. Most people need to be kept from their retirement savings because they will blow it, most 30 year olds are just getting into the groove of saving if at all. The 20’s are a hard age financially, it’s often spent partly still in school, then in entry level positions and it is those years you need to buy stuff because you don’t really have anything. Plus when you go from zero income to something decent, it vanishes in that lottery winning feeling, at least it did for me. I’m just guessing here, but if 50K is 10%, then you are buying a house for about 500k, for a 30 y.o. to buy a house and they have already saved 60% of the total cost essentially, that is such a stable lifestyle. I’m proud of you.