Lump-sum Additional Payment
Some folks can't manage extra payments. But it's important to note that most mortgage contracts will allow additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you come into extra money. For example: several years after buying your home, you get a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.