At those rates, I’d put excess cash toward the mortgage principal if your emergency savings and upcoming expenses are covered. Before taxes, avoiding 5.75% mortgage interest saves more than you’d earn with 1% to 2% interest in savings.

An extra $1,000 toward principal saves roughly $57.50 in interest over the following year, compared with $10 to $20 earned in savings. The exact mortgage savings depend on when you make the payment and your loan terms.

Before making extra payments:

- Keep enough cash accessible for emergencies. A common target is three to six months of essential expenses, plus money for expected home repairs and other upcoming costs. Money you put into the mortgage is harder to access. [Emergency-fund guidance](https://www.myfloridacfo.com/ymm/LifeEvents/HandlingTheUnexpected)
- Contribute enough to get any employer retirement match before putting all your surplus cash toward the mortgage.
- Check your mortgage’s prepayment terms and make sure the lender applies extra payments to principal. [CFPB guidance](https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/)

A mortgage-interest deduction can change the after-tax comparison, though the gap between your stated rates is substantial. Your lower-rate car loans would generally come after the mortgage if you’re prioritizing interest savings.