Pre-Extra-Payment Checklist
Run this checklist before starting any extra mortgage payment program. Also revisit annually to ensure the extra payment amount remains appropriate as your financial situation changes.
1. No Credit Card Debt Above 10% APR
If you carry any credit card balance above 10% APR, pay it off before starting extra mortgage payments. The spread between credit card interest (22%) and mortgage interest (6.5–7%) means every extra dollar should go to credit cards first. No exceptions.
2. Employer 401k Match Fully Captured
Confirm you are contributing at least enough to your 401k to receive the full employer match. A 50% match on 6% contributions is a guaranteed 50% return — it must come before any extra mortgage payment.
Full 10-Item Checklist
Extra mortgage payment checklist — 10 items before beginning
| Item | Check | If Not Met | Priority |
|---|---|---|---|
| 1. No high-rate debt | No credit cards above 10% APR | Pay credit cards first | Critical |
| 2. 401k match captured | Max employer match contribution | Increase 401k before extra mortgage | Critical |
| 3. Emergency fund ($1K min) | At least $1,000 liquid | Build to $1,000 first | High |
| 4. No prepayment penalty | Check loan documents | Calculate net savings if penalty exists | High |
| 5. 'Principal only' designation confirmed | Verify servicer applies extra to principal | Call servicer; test with one payment | Required |
| 6. Autopay for required payment set | Required monthly payment automated | Set up before adding extra | Required |
| 7. Budget verified | Extra amount sustainable indefinitely | Start smaller if uncertain | High |
| 8. Payoff goal calculated | Know target payoff date and interest savings | Use calculator to set goal | Medium |
| 9. Annual review scheduled | Calendar reminder to update amount | Set December reminder now | Medium |
| 10. Windfall protocol established | Rule: windfalls go to principal | Write the rule down now | Medium |
Calculate Your Savings After the Checklist
Once you’ve confirmed all 10 items, enter your balance and extra payment to see your projected payoff date and total interest savings.