The differential between rates at 417 and below the 697K are not that much these days. Waiting a year or two to get under 417K for the sake of rates is probably a loser of a bet to make and I wouldnt.
Where it gets trickier is in the qualifying. With great debt to income ratios and $15K/month w-2 income that should not be an issue.
With that kind of income, the tax benefit to your will be very high. Think somewhere close to $1,000/month. So your net housing expense will be closer to $2600/month once the 401K loan is repaid.
I’ll further assume you arent renting a 4BR 2,000 sq ft single family home with guaranteed fixed rent for the next 10 to 20 years at $1500/month.
If you can find something you like, you should be fine barring an extended major income crisis.
FWIW, I have a 4BR lisitng in escrow just under 2000 sq ft in fine condition built after 1990 with No Mello Roos or HOA in Scripps Ranch on a quiet cul de sac street. Its in escrow just over $500K. Find yourself something like that. They are out there for the taking.
