Congratulations on becoming a homeowner and qualifying for such a good interest rate.
What is the company match for your 401(k) plan? At an 8% deferral it sounds like you may be receiving the maximum match. I don’t know how the real estate market in Cincinnati is doing, but keep an eye on your property value relative to the market around you. Review your fund choices inside the 401(k) plan and be sure that your allocation matches your lengthy time horizon (to retirement). One idea some of my clients use is to make one extra mortgage payment per year which all goes to principal. You could make it an end of the year or a January tradition. Another habit would be to escalate your 401(k) deferrals by 1% per year until you get to at least 10%. Keep in mind that dollars deferred now are much ‘cheaper’ in future dollars, than dollars deferred after you are 40-45 years old.
Also keep in mind three things, your individual feelings about being in debt; that your home is not a liquid asset, and that if you leave your job, you can leave your 401(k) plan there, roll it into an IRA, or roll it into your next job’s plan (if permitted). I wish you continued success!