Prepaid Interest

See: Private Mortgage Insurance - PMI.

Banks love it when you do this. Their risk of not being paid back is oh so much less. So then...what do you get in return for pre-paying instead of just paying? Well, usually a cheaper interest rate going forward. Good deal, usually, if you have the capital sitting around to do so.

And fun adder: in the case of a mortgage's interest, that interest is tax-deductible, so take advantage of it, especially if you live in a Blue State.