Amount of down payment to put down on a house before we retire

My wife and I are 62 years old and presently renting. In a year or 2, we’d like to buy a house. We both presently work but are planning to retire in 2-3 years. We would buy this house while still fully employed. But a year or 2 after purchasing the house, we are hoping to retire. We could have approx. $900,000 in our 401k and savings by the time we are ready to buy (approx 2 years). Essentially, we’d like your opinion on which scenario (re: the points below) would be best for us…

Pros and Cons of putting down a LARGE DEPOSIT on a house (more than 20%):

PROS of putting down a large deposit on a house:
– Smaller monthly bill
– Pay smaller amount of interest cost on the mortgage
– Paying off the mortgage sooner

CONS of putting down a large deposit on a house
– By withdrawing a larger sum, we’ll compound less interest in our savings
– Pay more taxes for withdrawing a larger sum from our savings

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Pros and Cons of putting down a SMALLER DEPOSIT on a house (at least 20%):

PROS of putting down a smaller deposit on a house:
– By withdrawing a smaller sum, we’ll compound more interest in our savings
– Pay less taxes by withdrawing a smaller sum from our savings

CONS of putting down a smaller deposit on a house
– Larger monthly bill
– Pay higher amount of interest cost on the mortgage
– Paying off the mortgage later