First of all, what is it you want to do? Do you want to stay in your current house (which sounds like a pretty good fit all the way around), or are you thinking of pulling up stakes and moving? It doesn't seem clear to me, unless I'm missing something.
Part B of this discussion is, of course, the old "Pay off the mortgage and save and invest the difference, or continue paying the mortgage, and keep the money invested." controversy. People get very passionate about both options, as a couple of threads on this forum have demonstrated.
I am just coming up on three years of widowhood, and it is a time not just of dealing with bereavement, but figuring out who you really are and want you really want...when you no longer are working things through together as a couple...when it is just you. It is quite a task, and I'd recommend exploring this carefully and mindfully, so when you do make a decision, it is the right one for you. (And P.S.--what is best for you is not necessarily what well-meaning friends and family think is best for you.) It's kind of a dual task--handling the net worth wisely while following your heart.