House Poor?

EDIT:

Thanks everyone for your replies and different perspectives, we’ve decided to move forward and it’s now in the hands of the bank and the VA lol.

Love to all of you!

Hello everyone I love the sub and everyone here, I have a question to run by you all if the mods allow it to stand.

Me (36M) and my spouse (33M) live in a HCOL/VHCOL in a house we owe 610k on at 2.25%. Our total payment is 3300/mo.

I can retire at age 50 with a pension conservatively estimated at about 9500/mo gross. Could continue to work past that but that’s the original ChubbyFIRE goal.

Both of us max our 401k Traditional, Backdoor Roth IRA, and are saving between $4-5k per month. Total HHI last year was $350k.

We have discussed moving because our house is a starter house here 2/2 with 1200 sq ft and on a steep lot, one car garage, etc.

One of my colleagues is transferring locations and is looking to sell his house. We went over to go look at it, and my only concern is the price. Based on comps it’s easily worth about 1.35m but he’s asking 1.275 and no realtors involved.

Another caveat is he has a $750k assumable VA mortgage at 2.25% which we are eligible to assume.

We have $50k cash and another $120k in crypto (none of which I want to spend if we don’t have to) so looking to take out another $500k loan to purchase the house.

On paper this is affordable, we have no debt besides the mortgage and one car payment, gross monthly is $25,000 in for a mortgage of ~6,800 out.

Am I being unreasonable to feel uncomfortable here? My job is an extremely secure federal position, my spouse is in private industry but in a growing field with lots of money pouring in.

What gives me pause is the knowledge that we could currently lose one of our jobs/take a sabbatical/etc. and still be okay. And also the knowledge that I’m trading money at age 50 for a nicer house to live in for the next two decades.

Thanks for any and all input.

TLDR: is $7500/mo in debt payment house /car on $25000/mo income crazy lifestyle creep or am I being crazy and cheap?