**At those rates, I’d put excess cash toward the mortgage principal—provided your emergency savings are sufficient.** Avoiding 5.75% mortgage interest beats earning 1%–2% in savings, before taxes.

For perspective, an extra $1,000 toward principal saves roughly $57.50 in interest over the following year; $1,000 in savings earns about $10–$20. Exact savings depend on payment timing and loan terms.

Before making extra payments:

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

Taxes can change the comparison if you receive a mortgage-interest deduction, but the gap between your stated rates is substantial. Your lower-rate car loans generally come after the mortgage when prioritizing interest savings.

**If your cash cushion and near-term expenses are covered, extra mortgage principal is the stronger choice between these two options.**