I keep one of these:
http://www.harborfreight.com/cpi/ctaf/d ... mber=97685 on the back of my CR-V at all times. Our two pups sit in the trunk of the CR-V (the whole trunk is their "seat"), and the little one needs the step to get in unassisted.
They also have an extension:
http://www.harborfreight.com/cpi/ctaf/d ... mber=98677
Any hitch extension (this step included) will increase sway -- but if you are making the tongue longer, that will reduce sway. Any hitch extension will also effectively INCREASE your tongue weight, because it is more strain on the back mounting point. If you've got a huge, beefy aftermarket hitch, then it shouldn't be a problem. I wouldn't want to put any extension on a 1 1/4" hitch or a stock hitch though.
If I were you, I would get the step or extension, and not extend the tongue. Extending that tongue will be a nightmare...
What is the current tongue weight, and how much will you be putting in the tongue box? If your tongue weight is several hundred pounds heavier than it needs to be, a rear rack might be a better idea...