Thank you all for your input, it's very much appreciated. The medical bills from the baby have been paid off already, so thankfully that is out of the way.
You all have confirmed what I was hoping to hear. I plan on paying off the SL balance in full and over the next few months I can replenish my emergency fund with the savings from not paying the SL. Once I get the emergency fund back on track, I'll put some extra towards the mortgage. I agree with your comment on letting the car loan payment ride out since the interest is only 2%. I hadn't considered that before, but it makes sense.
Our 401k's and IRA aren't maxed out yet, but we've increasing it every chance we get until we hit the thresholds. We're both 31 right now and have FI goal of 50. I know we have a long way to go to hit our goals, but reading this blog and advice from the MMM community keeps us motivated to cut costs and live more efficiently.
Thanks!