Priority of investment question

Is it okay to prioritize putting money towards a down payment on a home renovation while sacrificing a Roth

35M married. 1kid another on the way. Both work full time.

We have a 2 bedroom house but need more space. Currently have a 2.75% interest rate of 400k worth of a 700k home. so I really don’t want to move.

An addition for us is in the plans. Will cost over 400k. Interest rate on the equity line we’ll use is whatever prime is.

We currently have 150k in a HYSA going towards the home reno our goal is 200 so we can borrow 200 in equity. We also have a decent emergency fund.

We have a pension from me. And a 401k for my wife that is being deposited enough to max the company match but not more.

We also have another income property a condo with another 2.75% interest rate that is giving us good cash flow.

So for retirement we already have my pension. My condo. My wife’s Roth 401k and social security.

We each also have a Roth IRA maxed for 2024 (only 7k each) but have not deposited anything into it moving forward.

My Plan is to take a break from investing into the roths and put all money towards the HYSA to use for the renovation to save as much as possible on the high interest rate project. The fact that there is a cap on the Roth and 401k deposits per year make me feel bad for missing out but I think this is the smartest decision for long term financial needs. (Still going to deposit enough to take advantage of the 401k company match)

I guess I just wanted to share this to make me feel better. Any thoughts ? Do you think I am making a mistake or is my plan okay?

I also plan on starting a 529 for my kids as well.

TLDR. 1) interest rate is going to be very high on the equity line. 2) we have a decent allocation of retirement funds already. Going to sacrifice retirement allocations to put towards an expensive home renovation (2nd story for more bedrooms for our growing family)