Lump-sum Additional Payment
Some folks can't manage extra payments. But it's important to note that most mortgages will allow additional payments at any time. You can take advantage of this rule to pay extra on your mortgage principal when you come into extra money. If, for example, you were to receive a very large gift or tax refund three years into your mortgage, you could apply this money toward your mortgage loan principal, resulting in huge savings and a shorter loan period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and in the length of the loan.