How is interest calculated on a mortgage loan?
Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.
Miriam Martin
LPT Realty, Inc
Fax:866-496-9881
10620 Treena St
San Diego, CA 92131 US
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