Best way to tackle mortgage payoff vs retirement funding?

Hey all

Maybe this is a unique situation, maybe it’s pretty common but I’m seeking advice and strategies.

Here’s the basic details: *30 year conventional; $420k purchase price; $84k original downpayment, and then an additional $165k+/- as part of a refinance, so the new loan is 30 year fixed, conventional at 5.25% $180,000 loan. *PITI is about $1750/month; ballpark equity is $250k. *we don’t plan on moving.

Household income is around $110-120k/year. However a)were both freelancers, so that can go down about $20-30k in a bad year or up to about $150K in a better year and b)we hope to be having our first child in 2026, so household will drop to about $72k for around a year.

Looking for the best strategies: A. Invest any excess income over and above our monthly costs, assuming a 7% rate return, adjusted for inflation. B. Pay down the mortgage with any excess income over and above monthly costs towards principal? C. Some combo of A and B? D. Something I haven’t even considered? E. Random potential curveball-when my mom eventually passes (10-15 years), I’ll probably get $250-$350k or so when I’d have to sell her home. That would then go to our retirement also.

*All options assume I’m contributing max to ROTH IRA annually. No 401k, but a decently healthy retirement. *I won’t be retiring at any specific age because my line of work I can stay reasonably involved until 75ish. I’ll also have a small pension and social security (maybe, right).

Should the goal be to keep growing retirement or to pay down this home ASAP, ideally ten years?