I wouldn’t personally down anymore than 20%. Why put all your chips on one hand? The interest in the addition $400k in mortgage after tax deduction would be about $1300/month @ 7%. The interest you would make minus taxes in a saving account @ 5.3% would be about $1500/month. So, it’s a wash, but you have that money in cash just in case an opportunity/hardship comes up. If you bump that 5.3% up to 10%, it would make that much more economical sense to not down the whole 400k.
