Can you give me some financial advice on paying off our house?

We recently came into a fairly substantial sum of money, $55,000, that will allow us to pay off the house, except for about $20,000. Figure we’ll take a regular loan at the bank to pay that bit off.

My husband brought up a good point. He said that when I pay it, do it in two installments. Instruct them to pay off the interest that is owed on the last two months (we’re 2 months past due) and a second payment, with instructions to put that toward the principal.

This sounds like sound advice to me. What are you thoughts? And do you have any other suggestions?

I gotta tell you, I’m so excited I’m about to pee my pants! To flow into retirement with the house paid off!! ZOMG!