Lump Sum Extra Payment
Some borrowers just can't make any extra payments. But it's important to note that most mortgage contracts will allow additional payments at any time. Whenever you get some unexpected money, you can use this provision to pay an additional one-time payment toward principal.
For example: several years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , you could apply this money toward your mortgage loan principal, which would result in huge savings and a shortened loan period. For most loans, even this small amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.