No. of Recommendations: 3
I don't think I'd pay down the mortgage, if it were me. Especially if its low rate (I thought I read in one of the follow ups that its at 5%).

Saving only 5% in a 401k and 5% in a Roth wouldn't allow ME to make it to retirement comfortably. Have you calculated how much you will need to comfortably retire? Do you know about when you want to retire? Are the 5% contributions you are planning for adequate to achieve this?

If it were ME, I'd sit down and figure out just how much retire (and college, too) will cost. Then I'd fund in this order:

1) Contribute enough to the 401k to get the match
2) Contribute enough to max out both you and wife's Roths
3) If you need to save more to reach your retirement goals, then do so via your 401k
4) Fund 529 plans for the girls

Only AFTER your retirement goals are funded should you think about funding the 529 plans. They can get scholarships for college, but you have to fund your own retirement plans. And remember, its okay to make sacrifices. Like if you want to retire 5 years later so you CAN fund the 529's, then that's fine too. Just make sure you understand the sacrifices and are okay with it.

An ditto on the disability suggestion for your wife. Don't forget about life insurance for her as well. If she dies, you'd have the added expense of child care.
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