CASH FLOW GUIDE

Keep an emergency fund before prepaying your mortgage

Mortgage prepayment can reduce interest, but money sent to principal is no longer readily available for a job loss, medical bill or urgent repair. A strong plan balances debt reduction with accessible savings.

Separate goals

Set aside cash for near-term bills and planned expenses before selecting a lump sum. If your income is variable, a recurring extra payment may provide more flexibility than one large transfer.

Review other debt

Higher-interest unsecured debt may deserve attention before a low-rate mortgage. The right order depends on rates, required payments, tax situation and personal risk tolerance.