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PRACTICAL CHECKLIST

Before you prepay: a practical checklist

  1. Get the lender's current balance and confirm the payment date.
  2. Ask about prepayment charges, annual limits and principal-only payment instructions.
  3. Keep a suitable emergency reserve before using cash for a loan payment.
  4. Review higher-interest debt and other essential financial commitments.
  5. Save the lender's written confirmation after the payment is applied.
  6. Re-run your scenario if the loan rate, balance or repayment terms change.

This checklist is educational and is not a recommendation for any particular borrower.