Did we buy too much house?

My husband (28) and I (23) just purchased our first home together in November 2024. It’s a 1,500 sqft, 3 bedroom, 2 bathroom that we hope to start our little family in. The purchase price was $625,000 and we put 5%, down. Our interest rate is 6.875% with a 1% buy-down for the first year. Our current monthly payment is $4,179, but once the buydown period is over it will be $4,560.

I make $92,000 per year and my husband makes $115,000. Our monthly take-home pay comes out to around $11,000 after taxes and deductions.

Our other necessary expenses are around $2,500 a month including utilities, phones, food, and transportation. We typically spend around $1,000 a month on other stuff we want like eating out, golfing, and camping. I also contribute $600 a month to my 401k and my husband contributes $600 a month to a Roth IRA.

This leaves us with a fairly decent margin every month. I know that our house payment is over the 25% of our take home pay that is recommended, but it doesn’t feel like we are struggling to make ends meet. We also expect our incomes to go up a lot since I am going up for a promotion at work this year and my husband’s work is picking up a lot more recently. And if interest rates drop we will refinance.

Do you think we bought too much house or are we in an okay situation?